Syed Imran Haider 
Xiaomi has gone through several significant business knocks in India last year. Recently, the handset giant took to the headline as it decided to kill off one of its most popular consumer apps Zili. A TikTok clone – the short-form video app from Xiami witnessed millions of downloads by Indian users, got a ban in India, and eventually will go offline on 13 March 2023.
The company announced the shutdown of Zili using a notice within the app, saying the move was because of some operational adjustments. However, Xiaomi did not elaborate on the reason further. The app is already banned on its official website.
The short video app got popularity within a short time after its launch in 2018, especially when India banned TikTok. It asked users to download their content for offline use later to redeem Z-Points. Xiaomi confirms that users will be able to cash in their points before the app gets permanently shut down in March.
According to the app notice, Zili will delete all user data from its server after the given time. It means users will no longer be able to retrieve it after 13 March 2023. Sensor Tower data also revealed that Zili app downloads increased to eight million within twenty days of TikTok getting blocked in India. The substantial growth from the previous three million downloads took the world by storm, letting the app amass more than 100 million downloads up to the present time.
When India banned TikTok, several short-video apps besides Zili experienced a boost in the number of its active monthly users to fill the void. However, it was a short-phase was short-lived growth phase even as Xiaomi started to experience numerous political wrangles with a few of its apps, including Mi Video Call, and got banned by the Indian administration.
Although the news of the Zili app closing due to any reason came as a shock to its users, it is worth mentioning that Xiaomi has faced increasing scrutiny in India. The smartphone giant is facing challenges to retain its reputation in the Indian marketplace and grow inventory management.
In 2022, Xiaomi also discontinued its financial services as a part of its strategic activity and to improve focus on its primary business. Closing Zili will indicate one more disconnection for Xiaomi in India.
Xiaomi Seems to Dim Shine in India
The Chinese giant has come into a challenging position in India – known for the world’s second-largest handphone market. it has declining shipments and reducing local departures.
Xiaomi is known for being the Apple of China. It has run off its home marketplace and emerged as a household name in India following its debut in 2014.
The initial and rapid success came with phones. The Chinese company received the velocity to take on other product categories, becoming a primary player in IoT devices, wearables, and smart televisions. Xiaomi also started investing in Indian startups within two years and made a place in consumer lending services. But now, the smartphone manufacturer lost its top position in handset shipment in Q4 2022; and faces regulatory pressure in the country in the middle of increasing economic tension between India and China.
