Briefing: Xiaomi converts budget phone range Redmi to sub-brand

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红米品牌终于独立,未来小米凶险几何? – Tencent Tech

What happened: Chinese hardware giant Xiaomi is turning its Redmi smartphone label into a sub-brand. Lei Jun, founder and CEO of the company, said the reason for the separation is that it allows Xiaomi to focus on different groups of consumers. “Redmi and Xiaomi brands are independent and can be developed in different directions to help enhance the overall brand image,” he said. With the Redmi sub-brand focusing on its efficient e-commerce channel, it leaves the company’s Mi series to focus on the higher-end market.

Why it is important: Sub-brands have always been popular among mobile technology manufacturers, providing enhanced brand recognizability in targeted markets. BBK Electronics owns Oppo, Vivo and OnePlus, while Huawei launched its entry-level sub-brand Honor in 2013. Recently, there has been a new surge of sub-brands being established, including Oppo’s Realme, focusing on the budget market, and Xiaomi’s Poco in the mid-range price bracket. The Chinese smartphone market is looking more specialized and diverse, reflecting the increasing needs and the various demands of consumers.