This has been a big week for the Xiaomi ecosystem, as one of the companies in the Xiaomi fold just acquired Segway. The acquisition caught the attention of industry-watchers the world over, but beyond being a big move for purchasing company Ninebot, the acquisition was also a big step for Xiaomi, as it marks the first time a company in its ecosystem has purchased a globally-recognized brand.
On Wednesday, Xiaomi CEO Lei Jun spoke with reporters from China’s Southern Metropolis Daily about the acquisition and Xiaomi’s broader plans. The company is, after all, facing growing challenges from domestic tech firms like LeTV that are getting into the smart hardware game.
But Lei Jun told reporters that Xiaomi wasn’t concerned about that. Its strategy, he said, is to grow the company into an “ecosystem empire.” With software that can link up anything, Xiaomi can radically increase its product offerings simply by investing in and bringing in new partners in all corners of the internet-of-things industry. To that end, Xiaomi has already invested in more than 20 startups, and Lei Jun said the company plans to invest in a hundred more, and help them copy the Xiaomi model to achieve growth.
Xiaomi isn’t the only company working on creating a smart hardware ecosystem, but it does seem to have a head start on most of the competition. The company already offers smart products from a bunch of startup partners that link into its system – smart lightbulbs, smart air purifiers, etc. And that approach is already working well enough that external investors have gotten on board. US-China investment firm GGV Capital, for example, has already invested in three different Xiaomi-ecosystem companies and seems to be actively pursing Xiaomi firms as part of its Internet-of-Things bet.
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
