Xiaomi Expands into Brazil

It’s the largest smartphone company you have never heard of, unless you deal with Asia a lot. Xiaomi has restricted their cellphones to Asia for a long time, but have now made their first foray to a foreign country. They’ve chosen Brazil as their target. Their latest device, the Redmi 2, will be sold and assembled in Brazil, a booming electronics market. In 2014, Chinese electronics giant Xiaomi surpassed Samsung Electronics and Apple Inc. to become Chins’s leading smartphone vendor by offering phones at near-cost to target less affluent customers. As the company attempts to replicate that success in a new market, they plan to continue to sell the phones primarily online, rather than in brick-and-mortar shops, which helps to keep costs low. While smartphone sales estimates foresee 1.45 million units sold, the Chinese smartphone vendor has had to deal with regulatory requirements that have forced it to use local labor and parts, stretching its supply chain out further than it has ever dealt with before. Brazil’s high energy, labor and logistics costs add to the challenge. When a company stretches their business across oceans, the supply chain becomes far more complex. The increase in shipping time leads to further delays in payment. This is how money gets tied up in the chain. A lack of working capital can develop if it goes on too long. Supply chain finance solutions can break down these delays no matter how long it takes to ship supplies. E-invoicing and immediate invoice payment solutions speed up the production of vital parts needed for companies to grow. PrimeRevenue’s solutions can help your business take advantage of these new technologies. Find out more by contacting our sales offices.