Case Study: Xiaomi achieves just-in-time inventory efficiency and rapid growth with QuickBooks Commerce

Xiaomi - Customer Case Study

Xiaomi is a Chinese smartphone upstart founded by Lei Jun that set out to break into a market dominated by Apple and Samsung. The company faced steep hurdles: winning over component suppliers after initial rejections, avoiding the overstock mistakes Lei had seen at Vancl, and competing on price and quality without traditional retail and marketing channels.

Xiaomi solved this by building a just-in-time supply chain, selling primarily online to eliminate distributor margins, using limited-production runs and longer product cycles, and monetizing accessories and services within its MIUI ecosystem. The approach slashed inventory holding (up to ~80% less stock), drove strong consumer demand through scarcity tactics, and delivered rapid growth—26.11 million phones sold and ¥33 billion revenue in H1 2014—helping Xiaomi overtake competitors to become China’s top smartphone vendor.

Xiaomi

Lei Jun

Founder, Chairman and CEO