In a statement to Reuters, Muralikrishnan B, the President of Xiaomi India, revealed the company’s new strategy for smartphone sales by shifting its focus from online e-commerce to offline channels, particularly Indian retail stores. Xiaomi aims to revive its sales by capitalizing on the offline physical market, which holds a larger market share than online sales. Despite Xiaomi’s success in the Indian market, with rapid expansion facilitated by e-commerce giants like Amazon, Wal-Mart, and Flipkart, the company acknowledges that its offline market presence lags behind competitors who have gained significant traction in brick-and-mortar stores.
Strategy To Increase Sales of Xiaomi India
Counterpoint Research data indicates that only 34% of Xiaomi’s sales in India this year originated from retail stores. At the same time, the majority were derived from online sales, which have historically been the company’s primary revenue source. In contrast, Samsung’s sales demonstrate a more balanced distribution, with 57% coming from physical stores. As part of its new strategy, Xiaomi plans to strengthen its existing network of 18,000 Indian retail stores and collaborate with partners to promote sales of other products, such as Mi TVs and security cameras, which face less intense competition. Additionally, Xiaomi aims to address concerns where cooperative stores prominently display competitors’ brands in-store while downplaying Xiaomi’s distinct orange logo.
Read Also: Xiaomi MIX Fold 3 to Launch in August: Specs Expected!
To support its offline expansion, Xiaomi India intends to hire more sales staff, with a target of tripling the current number to 12,000 by the end of next year, starting from early 2023 levels. Having entered the Indian market in 2014 and rapidly climbed to become the country’s leading smartphone brand in the third quarter of 2018, Xiaomi has recently experienced a decline in low-end phone sales. As a result, the company’s market share in the Indian mobile phone market currently stands at 16%, trailing behind Samsung’s 20% share.
