The Xiaomi of China will focus on increasing its sales from India from retail points of sale after years of great bets on electronic commerce, said its president of India, since the company seeks to relive sales of smartphones after being left behind of Samsung of South Korea.
Electronic commerce sales in India through Amazon and Flipkart de Walmart have increased in recent years, helping Xiaomi and others to expand in one of the world’s fastest growing markets, with 600 million smartphone users.
But while 44 percent of the Smart Sales of India are now online, the brick and mortar segment is still the largest and Xiaomi game expects it to grow even more.
“Our off -line market position is substantially lower than what is online,” said the head of the Xiaomi India on Friday, Muralikrishnan B, in an interview. “Offline is where you have other competitors who have been executing quite well and have a greater market share.”
Only 34 percent of the Sales of the Xiaomi India unit this year come from retail stores, and the rest through websites that have long been their dominant sales generator, as shown in the research data of counterpoint based on Hong Kong. Samsung, in contrast, gets 57 percent of its store sales.
Xiaomi plans to expand its network of stores beyond the current 18,000 and associate more and more with telephone suppliers to offer other products, such as Xiaomi televisions or security cameras, where Muralikrishnan said that competition is less intense.
He said that Xiaomi found that some associated stores that put their bright orange brand outside the stores that showed rival brands more prominently inside, a marketing problem that the company would address.
Xiaomi’s offline impulse occurs months after he lost his leadership position against Samsung, which had a much larger premium phone portfone now in fashion. The South Korean giant has a market share of 20 percent in India, while Xiaomi, which historically focused on budget phones, has 16 percent.
“Offline remains a key platform since India adopts the premiumization trend,” said counter -spring analyst Tarun Pathak. “Consumers who spend more would like to have the appearance of the premium product.”
Xiaomi plans to hire more store promoters: vendors that attract, present and sell phones to possible buyers within the points of sale. He is aimed at tripling 12,000 promoters at the end of next year since the beginning of 2023, said Muralikrishnan.
Another significant challenge of India for Xiaomi is the freezing of $ 673 million of a federal agency (almost Rs. 5.5 billion rupees) in its bank assets since last year. The agency alleges that Xiaomi made illegal remittances to foreign entities in the name of royalties. The company denies irregularities.
“We will continue to trust … that ultimately our position will be heard and validated,” said Muralikrishnan.
© Thomson Reuters 2023
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