Xiaomi, the leader in India’s smartphone market, plans to significantly expand its presence in the offline segment. The company plans to expand its presence offline this year to expand sales, mainly for products beyond smartphones, such as television and other accessories. Apart from setting up new stores, the Chinese smartphone maker also plans to expand its various retail formats in the country. The company is reportedly planning to expand the number of Mi Home stores in the country to 100 this year and it also plans to open 5,000 smaller size Mi Stores in rural India.
Xiaomi currently has over 50 Mi Home stores and 500 Mi Stores and according to Economic Times, the company wants to expand its presence in the multi-brand retail segment as well. A company spokesperson told the publication that it plans to expand through the Mi preferred partner programme and it claims to have more than 4,000 preferred partner stores across 50-plus markets. Samsung, which is the second largest smartphone brand in the country, is the leader in offline sales and Xiaomi is now looking at dethroning the Korean smartphone maker.
“2019 will also witness more ambitious retail expansion of our offline channel to extend support for newer categories such as Mi LED TVs. In smartphones, Xiaomi is the second largest brand in the offline market with nearly 18% market share as of January GFK smartphone tracker,” the spokesperson told ET.
Xiaomi first forayed into the offline channel in India two years back and the spokesperson confirmed that the company has grown 40 times in the offline sales in last two years. It says that over 30 percent of smartphone sales comes from offline segment now.
“Xiaomi has an extremely lean offline model, and we continue to spend minimal dollars on marketing and operational costs which include running interesting promotional schemes. However, with the scale of offline sales becoming bigger, investments in offline will accordingly grow,” the company said.
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Xiaomi, which forayed into the country in 2014, as a smartphone maker, has now expanded its business model to include other products as well. It business pans across hardware, internet services and retail business now. With the offline segment growing in terms of market share, Xiaomi hopes to take the fight to Samsung as it sees increased competition in online segment and has reached some kind of saturation in terms of sales.