China’s Xiaomi Increases its India sales from retail locations after years of major bets on e-commerce, its India president said, as the company strives to resuscitate smartphone sales after falling behind South Korea’s Samsung. This comes after years of big bets on e-commerce by Xiaomi.
E-commerce sales in India have skyrocketed in recent years thanks to Amazon and Walmart’s Flipkart. This has helped Xiaomi and other companies flourish in one of the world’s fastest-growing markets, which currently has 600 million smartphone users.
However, despite the fact that now 44% of smartphone sales in India are made online, the brick-and-mortar market is still the major play, and Xiaomi anticipates that it will continue to grow.
“Our market position in offline is substantially lower than what it is online,” the head of Xiaomi in India, Muralikrishnan B., said in an interview on Friday. He was speaking about the company’s offline sales. “Offline is where you have other competitors who have been executing fairly well and have a larger market share,” you said. “Offline is where you have a larger market share.”
According to data provided by Counterpoint Research in Hong Kong, only 34% of Xiaomi’s unit sales in India have come from retail outlets so far this year. The remainder of the company’s sales have been generated through its websites, which have traditionally been its primary source of revenue generation. In comparison, 57% of Samsung’s revenue comes from the company’s retail outlets.
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Xiaomi Increases India Retail with ambitions to extend its store network beyond the present 18,000 and to increasingly cooperate with phone vendors to provide other items, such as Xiaomi TVs or security cameras, where Muralikrishnan said competition is less severe. These expansion plans are expected to take place in the coming years.
According to him, Xiaomi discovered that some partner retailers that had its bright orange branding outside shops were showing competing brands more conspicuously inside. This is a marketing issue that the business would work to rectify.
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The offline push from Xiaomi comes several months after the company lost its top position to Samsung, which had a significantly larger array of premium phones that were fashionable at the time. In India, the market share held by the South Korean behemoth is 20%, while the Chinese company Xiaomi, which has traditionally focused on low-cost phones, holds 16%.
Another important obstacle for Xiaomi in India is the freezing of its bank assets to the amount of 673 million dollars by a federal agency since last year. The agency has allegations that Xiaomi violated the law by sending money to foreign organizations under the guise of royalties. The corporation asserts that it has done nothing improper.
Muralikrishnan expressed his optimism by stating, “We will continue to be confident… that ultimately our position will be heard and validated.”
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