Summary of Why Are Xiaomi and NetEase Entering the Online Home Goods Sector?

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Why Are Xiaomi and NetEase Entering the Online Home Goods Sector? summary
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Home goods is one sector of retail that has been doing particularly well in China. This market is bustling with contenders such as the popular Japanese brand Muji and China’s own retail chain Miniso. Now even large tech companies want a piece of the pie, and consumers have responded with enthusiasm. In this article for tech media site TMTpost, Xie Kangyu analyzes the drivers behind this new consumer behavior as she reflects on the factors that brought two tech giants to the same battlefield. getAbstract recommends this article to people curious about how social and economic change affects consumer behavior.

About the Author

Xie Kangyu writes for leading tech media site TMTpost. She focuses on consumer trends. 

 

Summary

Xiaomi – the Chinese electronics company known for its cost-efficient smartphones – launched its new online shopping app You Pin by Mi Home in 2017. Rather than promoting its line of tech gadgets and smart home electronics, You Pin prominently features general home goods, including bed linens, clothing and stationery.

Even earlier, NetEase, an Internet company valued at ¥40 billion ($6 billion) – with businesses in the online games, music, education and agriculture industries – had entered the online home goods market. In April 2016, NetEase launched its online shopping app Yan Xuan, which touts its own line of affordable home goods made by the same manufacturers as big name brands.

The two new home goods companies not only overlap in the products they offer, but also in the design and style of their online storefronts and the goods they sell. Their homepages look almost identical. Both utilize minimalist...


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