Wednesday, August 6, 2014

Xiaomi fined for Misleading

Xiaomi Misleading Customers





Third flash sale of Xiaomi Mi3 in India on 5th August also went off in flash, just in 2 seconds. So now it appears that only Mi3 is in demand in India with more than 2 lakh people wanting desperately to have Mi3.The strategy of creating hype and gaining attention seems to have paid well for Xiaomi and now Mi3 is the most talked about phone in India leaving behind all the Major players. However, many of the critics are saying that Xioami is not playing well with the customers and it is using them in wrong way to build its brand. Company is having history to play with the emotions of the customers.


Xioami fined for Misleading Customers


Here it is important to note that Xiaomi was fined by the Taiwanese Fair Trade Commission (FTC) for unfair marketing practice. It was found guilty for misleading the customers by false information and selling much lesser units of handsets then advertised. Xiaomi has claimed that its units put up for sale were sold in minutes and had also given the numbers of units that were for sale. However, the commission founded that the information given by Xiaomi to public was false and only few units were sold in the market.

Here in India too Xiaomi is following the same practice however, here it was cautious not to disclose the number of units put up for sale. It resorted to the same practice of putting very less units compared to the demand and then publicizing that its sale was instant hit. The phrases like gone in 2 seconds or 5 seconds created much hype and gave instant publicity to the company.


What is Flash Sale


The flash sale by Xiaomi is going very well with for it and because of this marketing strategy it has managed to make a strong presence in the smart phone market. Flash sale simply means high discount offer given by company for a limited time period.


Offers are sometimes very irresistible and since they last only for very limited period they attract much more buyer attention. Now the companies like Xiaomi are using it to build their brand and capture the much highly competitive market.

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