lei jun.jpg (Photo : Reuters)
Beijing smartphone maker Xiaomi recently ventured into a home decor start-up company ikongjian.com, bringing in $9.68 million in the start-up's coffers. Xiaomi founder Lei Jun made the investment through Shunwei Capital Partners, a company where he is also a co-founder.
Ikongjian is a start-up company that aims to be the "Xiaomi of the décor market." Founded by Chen Wei just last year, the company is moving rapidly in the e-commerce platform, pledging Web-enabled monitoring of decor projects to its clients.
Chen's business model is similar to Xaomi's Web-based platform that was vital in its success in the smartphone business. With similarities in pattern and strategies, Xaomi's venture into home decor is seen by experts as a winning investment, destined to set the trend in technological advances in interior decorating.
Beijing-based industry analyst Liang Zhenpeng said on Wednesday that "home décor is an indispensable part of creating a smart home, as relevant smart gadgets and furnishings need to be well incorporated to the decoration of the home."
Meanwhile, Xiaomi officials did not confirm nor deny the said venture. When confronted for confirmation by the press, Xiaomi PR manager Li Lei said that "Xiaomi is not directly related to Shunwei and therefore cannot give a comment on the subject."
However, without confirming nor denying the venture speculation, Li said that the company believes in the profitability of the smart home technology and admitted that its value is worth tens of millions of dollars.
Li further disclosed that the core of smart home venture lies in the wi-fi capabilities of home appliances that are connected to each other. Asided from Xiaomi's three major product categories which are routers, smartphones and TVs, the rest of their products consist of gadgets that bring technology to the modern home.
Xiaomi has become a top-level player in the home technology arena after only a few years in the market. The company's success both domestically and globally paved the way for other major players to try their hands on the home decor game. A case in point is the formation of partnership between JD.com Inc., a leading Chinese online sales company, and Midea Group Co., a major home appliances maker.
Other big names in the traditional home appliance sector are now teaming up with hi-tech companies to partake with the multi-million dollar profits promised by a smart home business.
