If Xiaomi and Redmi merge, can the brand segmentation be successful?

We all know that Xiaomi has several series of mobile phones. In addition to the well-known Xiaomi and Hongmi, there are also Black Shark game phones. Recently, Xiaomi officially announced that Xiaomi's two sub brands, Xiaoomi and Redmi, will be merged. What impact will this move have on Xiaomi's brand?

On the evening of June 6, Xiaomi's internal staff recently issued a document announcing organizational adjustment, with significant changes in its structure. Among them, the former Xiaoomi Product Department and Redmi Product Department of the Mobile Phone Department were merged to establish the Mobile Phone Product Department. Ling Xiaobing served as the general manager of the Mobile Phone Product Department, reporting to Lu Weibing, senior vice president of the Group, and Zeng Xuezhong, president of the Mobile Phone Department. At the same time, there were Xiaomi Product Department, Redmi Product Department, and Pad Product Department under the Mobile Phone Product Department. Shi Shasha served as the head of the Xiaomi Product Department of the Mobile Phone Product Department, and Guo Ruimin served as the head of the Pad Product Department of the Mobile Phone Product Department, Ling Xiaobing is also the head of the Redmi Product Department.

Previously, ordinary consumers said that Xiaomi mobile phones often included Xiaomi mobile phones and Hongmi mobile phones, but Xiaomi officials preferred to carry out internal diversion, separating the main brand from the sub brand. The reason for this is that Xiaomi hopes to reshape its brand image, get rid of the shackles of high cost performance in the early stage, and impact the high-end mobile phone market. Although market segmentation is a wise move, it takes a long time to build a high-end brand. High end mobile phone brands such as Huawei and Apple have experienced a relatively long history of development. Nowadays, Hongmi mobile phones are very popular in the middle and low-end mobile phone market, while Xiaomi mobile phones do not seem to have really set up the banner of high-end brands. It is not known whether this merger will successfully change this situation, which is worth looking forward to.

The internal structural changes of Xiaomi must have a certain impact on the brand products. However, after the merger, Xiaomi may be expected to impact the domestic medium and high-end mobile phone market. We do not know what the future development prospects will be.