Xiaomi, China's Apple success story?

Going global

Xiaomi will start selling smartphones in the overseas market in the second half of this year, Lei said. Rather than go to developed economies, such as the United States or Europe, Xiaomi has a more practical strategy - entering emerging markets.

It still needs time for customers in developed economies to recognize and accept a Chinese brand, Lei pointed out.

Countries such as Russia, India and Brazil may become the first destination markets for Xiaomi. "Because Xiaomi is a unique mobile phone vendor that has largely built its reputation through the Internet, we need to select markets with a good e-commerce environment and a well-established social network," Lei added.

"Similarly, Xiaomi will form a fans' group in every country in which we plan to have a presence," Lei said.

The MIUI, Xiaomi's mobile operating system based on Android, has already attracted millions of followers in 23 countries, which laid the foundation for Xiaomi's globalization.

C.K. Lu, a senior mobile device research analyst at Gartner Inc, said Xiaomi has an opportunity to penetrate markets especially in Asia, where users tend to be more cost-conscious. "But a lack of patents can be an issue for it (Xiaomi) when leaving its home market," Lu wrote in an e-mail.

Cultural challenges, limited experience in international operations and a shortage of talent are likely to be major obstacles to achieving the desired result, said Duncan Clark, chairman of investment consultancy BDA China.

Xiaomi raised about $90 million in the latest round of funding on Oct 20. The investors included Temasek Holdings, International Data Group and Qualcomm Inc. Xiaomi's total fundraising amounts to $131 million.

Lei said Xiaomi would not go public in the next five years. "If we have an IPO, we may be distracted from delivering good products," he said.

Lei said he had received no salary from the company, even though he is its CEO.

"I just hope Xiaomi will fulfill my dreams and become a world-class company. Working for Xiaomi is the last job of my lifetime."

shenjingting@chinadaily.com.cn