As it is known, many brands get into rebranding themselves in different companies and bug names like Xiaomi rebrands. This is not just limited to Xiaomi, OPPO has Realme and Huawei has Honor and the list goes on. What is the reason behind this rebranding though? Why do all these big China smartphone companies branch themselves under different names? We hope to shed more light on the subject of the matter in this piece content.
Xiaomi has lot more of sub-brands than just popular Redmi and POCO. As for the reason of all these rebranding trend, this is actually a strategy that many Chinese companies follow in order to increase their sales margin, expand their target users and grow in the market.
How does it work?
People grow accustomed to a name and develop certain connotations to it over time. For instance, “Xiaomi makes budget phones and I am looking for a high-end smartphone” is one though that comes to mind when thinking about Xiaomi.
Xiaomi does not only produce budget devices, but this way of thinking is stuck on the brand because of the past conducts. This limits a company’s target audience and in order to prevent it, Xiaomi decided to rebrand itself and has come up with sub-brands with different names, covering a lot more user base than it used to. So, Xiaomi rebrands its phones as they are new.
From the amount of brands that seem to be using this strategy, we believe that it is safe to assume that it actually works, and is a smart idea. It is a very common technique in China and you will likely to keep seeing more and more sub-brands like these in the future as well.