The Analysis of New Retail Strategy of Xiaomi Company in AI Era: A Case Study of Home Appliance in China
Keywords:
New Retail, Xiaomi, AI, Home Appliances, Customer Experience, Competitive AdvantageAbstract
This study examined the efficacy of Xiaomi's "New Retail" strategy within the Chinese home appliance market, with a particular focus on the integration of Artificial Intelligence (AI) technologies. The research sought to scrutinize the core elements of this strategy, analyze
the influence of AI on both sales performance and customer satisfaction, and identify associated challenges and opportunities. A mixed-methods approach was employed,
which involved conducting a survey of 400 Xiaomi home appliance customers
and semi-structured interviews with five experts drawn from the retail and AI sectors. Quantitative data gleaned from the survey were analyzed using descriptive statistics (percentages, means) and multiple regression analysis, while qualitative data obtained
from the expert interviews were subjected to thematic analysis. The results of the study indicated that AI-powered technologies, including personalized recommendations, smart home integration, virtual assistants/chatbots, and in-store AI experiences, exerted a positive influence on both sales and customer satisfaction. Specifically, personalized product recommendations exhibited the strongest association with sales (β = 0.38) and customer satisfaction (β = 0.32), followed by smart home integration (β = 0.25 for sales; β = 0.20 for customer satisfaction), virtual assistants/chatbots (β = 0.18 for sales; β = 0.35 for customer satisfaction), and in-store AI experiences (β = 0.10 for sales; β = 0.23 for customer satisfaction). Furthermore, the study identified challenges associated with the integration of AI technologies, such as data privacy concerns and integration complexities. However, it also highlighted opportunities
for enhancing customer experience and improving operational efficiency through the strategic deployment of AI. These findings offer valuable insights into the impact of AI on Xiaomi's new retail strategy and provide recommendations for future enhancements.
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