In-Depth Analysis of Xiaomi's Fan Economy Model

Based on collected data and market information, I will provide you with a systematic and comprehensive analysis report.

Since its establishment in 2010, Xiaomi has built the most distinctive fan ecosystem in China’s technology industry. From the early “Born for Fans” to today’s “Full Ecosystem of People, Vehicles, and Home”, the Mi Fan community has always been the core pillar of Xiaomi’s brand value [1].

• Group total revenue reached
  RMB 113.1 billion
  , representing a year-on-year growth of 22.3% [2]
• Global monthly active users exceeded
  741.7 million
  , with a year-on-year growth of 8.2% [2]
• The number of connected devices on the IoT platform exceeded
  1 billion units
  for the first time, with a year-on-year growth of 20.2% [2]
• Smartphone shipments reached
  43.3 million units
  , achieving year-on-year growth for 9 consecutive quarters and remaining among the top three globally [2]

The uniqueness of Xiaomi’s fan economy lies in its “sense of participation” culture. In the early days, it allowed users to directly participate in system development through the MIUI Forum, forming a unique “user co-creation” model. This model makes Mi Fans not just consumers, but also brand co-builders, creating emotional connections that transcend buyer-seller relationships [3].

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As the soul of Xiaomi, Lei Jun’s “model worker” image and approachable style have built strong trust assets. From 2024 to 2025, the viewership of Lei Jun’s live streams hit new highs repeatedly:

• Over 100,000 viewers in the first minute of a Douyin live stream
• New Year’s Eve live stream reached
  37.884 million viewers
  , with over
  120 million likes
  [4]

This model of deep integration between personal IP and brand directly converts consumers’ trust in Lei Jun into brand loyalty.

Xiaomi adheres to the pricing strategy of “making high-end products accessible to the masses”, maintaining strong price competitiveness in the smartphone, AIoT, and automotive sectors. During the 2025 Double 11 shopping festival, Xiaomi’s cumulative cross-channel payment amount exceeded [2].

The number of Xiaomi Home stores exceeds , forming an offline community network covering the entire country. In June 2025, the monthly active users of the Mijia App reached , and the monthly active users of Xiao Ai Classmate reached [5].

In early January 2026, Xiaomi planned to enter into a commercial cooperation with “Universal Big Bear”, a KOL who had long criticized Xiaomi, triggering a strong backlash from core Mi Fans. The incident led to:

• Lei Jun’s Weibo comment section was flooded, with a large number of users expressing a feeling of “being betrayed”
• Top digital bloggers announced the termination of annual cooperation with Xiaomi
• Xiaomi completed crisis public relations within 24 hours, dismissing the involved personnel and deducting executives’ bonuses [6]

This incident revealed the

of the fan economy:

Positive Effects	Negative Effects
Users voluntarily maintain the brand image	Brand decisions are “kidnapped by fans”
High conversion rate and repurchase rate	Over-reliance on core user groups, neglect of the mass market
Emotional identity is converted into purchasing power	Business decisions require “value review”
Community co-creation reduces marketing costs	Difficulty in effectively communicating with “non-Mi Fan groups”

Angel investor Guo Tao pointed out: “Xiaomi’s rise is inseparable from the emotional connections built by ‘Mi Fan culture’, but this business model highly dependent on fans also traps Xiaomi in a self-imposed value cage.” [6]

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Xiaomi has invested heavily in KOL marketing, forming a multi-level communication matrix:

• The SU7 delivered approximately
  280,000 units
  in the 13 months since its launch, becoming the best-selling sedan priced above RMB 200,000 [7]
• The YU7 received over
  200,000 pre-orders
  in the first 3 minutes of its launch, with a lock-in rate exceeding 60% [7]
• Automotive deliveries in Q3 2025 reached
  108,796 units
  , representing a year-on-year growth of nearly 700% [2]

Xiaomi’s strategy of trying to convert critics into supporters has major hidden risks. In the aforementioned KOL incident, the intended collaborator had made controversial remarks such as “Xiaomi won’t die, what will die are Mi Fans”, and this “turn enemies into friends” move instead hurt the emotional identity of core users [8].

Analysis shows that Xiaomi’s public relations strategy has a tendency of :

• Budget allocation requires “value review”, and the company dares not engage with controversial KOLs
• Difficulty in breaking through to new circles through cross-border cooperation
• Limited ability to respond to negative public opinion outside the fan circle [9]

Multiple controversial incidents involving Xiaomi Automotive in 2025 (such as doubts about the SU7 Ultra’s carbon fiber front hood, and safety disputes over traffic accidents) exposed problems with marketing rhetoric. Some posters triggered consumer dissatisfaction due to the practice of “using large fonts to hype blockbusters and small fonts to lay hidden clauses” [10].

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• In 2025, Xiaomi was included in Kantar BrandZ Top 50 Chinese Globalized Brands, ranking
  2nd
  [5]
• Selected for the 7th consecutive year in the Fortune Global 500, rising to
  297th place
  , a jump of 100 spots from the previous year [5]

Indicator	2024 Q3	2025 Q3	Year-on-Year Change
Global Monthly Active Users	685 million	742 million	+8.2%
Connected IoT Devices	860 million	1.036 billion	+20.2%
Number of Xiaomi Home Stores	Approximately 15,000	18,000	+20%

In Q3 2025, revenue from the smart electric vehicle and AI innovation business segment reached , with a year-on-year growth of , accounting for over 25% of the group’s total revenue, up from approximately 10% previously [2].

As Xiaomi’s user scale expands, the proportion of core Mi Fans in the total user base continues to decline. If brand strategies over-pander to early fans, it may lead to:

• Stagnant brand image, difficulty in expanding to the mass market
• Cultural adaptation issues in the globalization process
• Difficulty for new users to gain emotional identity [9]

Lei Jun’s personal IP is both Xiaomi’s core asset and a potential risk point:

• When product problems occur, doubts are directly directed at Lei Jun himself
• Deep integration between brand and individual brings inheritance risks
• After the 2025 Chengdu traffic accident, Lei Jun’s Douyin account lost
  1.51 million followers
  in 2 months [10]

Although this KOL incident has subsided, it may have long-lasting impacts:

• Loss of some core Mi Fans
• Damage to brand credibility
• Decline in users’ trust in the “emotional contract”

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Lei Jun holds three roles: brand spokesperson, product technology decision-maker, and company leader. This “integrated power and responsibility” model has significant risks:

• Products and brand are naturally aligned, saving collaboration costs
• Users’ trust in Lei Jun is directly converted into brand loyalty
• High decision-making efficiency, consistent strategic execution [3]

• Product problems directly affect brand image
• Marketing mistakes escalate into doubts about the company’s core strategy
• Lack of a “buffer layer”, public sentiment directly impacts core decision-makers [3]

• Lei Jun’s personal IP and the brand are highly overlapping
• Lack of a clear successor echelon
• Fans are overly dependent on the “Lei Jun era”

1. Establish a diversified brand expression system
   • Cultivate the brand expression capabilities of the executive team
   • Avoid over-reliance on Lei Jun personally across all communication channels
   • Build a multi-level KOL matrix

2. Improve internal decision-making mechanisms
   • Establish a KOL cooperation screening mechanism with user participation
   • Strengthen the brand value review process
   • Include “emotional fit” as a core evaluation criterion [6]

3. Promote the brand’s transformation from “fan identity” to “product identity”
   • Strengthen the communication weight of product strength
   • Reduce reliance on “emotional marketing”
   • Return to the essence of “making friends with users” rather than “fan operation”

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1. Trust Repair
   • Fulfill the promise of “saying goodbye to small-font annotations”
   • Establish a transparent communication mechanism
   • Reconstruct emotional connections with core Mi Fans

2. Product Safety
   • Strengthen communication about automotive safety performance
   • Improve the after-sales service system
   • Enhance quality control standards

3. Public Opinion Management
   • Establish a more flexible crisis response mechanism
   • Balance fan demands and business needs
   • Expand influence outside the fan circle

1. Brand Decentralization
   • Build a multi-polar brand communication system
   • Reduce reliance on a single IP
   • Cultivate a second echelon of opinion leaders

2. User Structure Optimization
   • Expand mass market share
   • Maintain the activity level of core Mi Fans
   • Establish a layered user operation system

3. Globalization Breakthrough
   • Replicate the fan economy model in overseas markets
   • Localize KOL cooperation strategies
   • Build a global brand narrative

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Xiaomi’s fan economy model has proven its effectiveness over the past 14 years, but it is now facing a critical juncture of transformation from “fan-driven” to “product-driven”.

✅

1. The “emotional contract” of the fan economy is fragile, and decision-making mistakes may lead to rapid backlash
2. The deep integration of Lei Jun’s personal IP and the brand brings inheritance risks
3. Over-pandering to core fans may restrict the brand’s expansion to the mass market and globalization
4. KOL marketing strategies require a more improved value review mechanism

Whether Xiaomi can maintain emotional connections with fans while establishing a healthier and more sustainable brand value system will determine its development trajectory over the next 5-10 years.

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[1] NetEase Economics - Analysis of Xiaomi’s 24-Hour Extreme Crisis Public Relations

[2] Xiaomi Corporation Q3 2025 Results Announcement

[3] Huxiu - Backlash Against Lei Jun’s Traffic Myth

[4] Gasgoo Auto - Can We Trust Lei Jun Again?

[5] Xiaomi Corporation Q2 2025 Results Announcement

[6] NetEase Economics - Xiaomi’s Trust Repair Requires Sincere Actions and Mechanism Guarantees

[7] Huxiu - Xiaomi Has Stunned China’s Automotive Industry

[8] Autohome - Analysis of the “Winning Over Black Fan Leader” Incident

[9] Eastmoney - Xiaomi’s Public Relations Trapped by Mi Fans

[10] Xinhua Finance - Xiaomi Automotive Suffers a Waterloo

[11] The Paper - Xiaomi’s New Year KOL Incident