Xiaomi, the Chinese smartphone giant, is changing its approach in India to prioritize offline sales through retail outlets. The Xiaomi India president revealed that this shift in strategy is to reinvigorate its smartphone sales and catch up with its competitor Samsung.
India has experienced a surge in e-commerce sales through platforms like Amazon and Flipkart, enabling Xiaomi and other smartphone brands to expand their market presence in one of the world’s fastest-growing smartphone markets, which boasts 600 million users. However, despite the online growth, offline retail remains the dominant channel, accounting for the majority of smartphone sales in the country.
Currently, Xiaomi already has a strong presence in 18,000 offline stores across India. Now, the company plans to further increase its offline footprint to capitalize on the untapped potential of retail. Muralikrishnan B., Xiaomi’s India head, acknowledged the company’s relatively lower market position in the offline segment, noting that competitors have been executing their strategies well and enjoying a larger market share.
To regain its market share, Xiaomi intends to collaborate with phone vendors and offer a wider range of products such as Xiaomi TVs and security cameras, leveraging the less intense competition in these areas. Expanding beyond its existing 18,000 outlets, Xiaomi aims to extend its store network in India. Muralikrishnan also acknowledged the issue of stores prominently displaying rival brands alongside Xiaomi products, which the company plans to address to strengthen its marketing efforts.
Recent data from Counterpoint Research reveals that Xiaomi has slipped behind Samsung in terms of market share in India, with Samsung currently holding a 20% share compared to Xiaomi’s 16%. To enhance its offline presence, Xiaomi plans to hire more store promoters who engage and pitch Xiaomi phones to buyers inside retail outlets. The company aims to triple the number of promoters to 12,000 by the end of the following year, compared to early 2023 levels.
By shifting its focus towards offline sales and expanding its retail network, Xiaomi aims to revive its smartphone sales in India and narrow the gap with Samsung. Recognizing the significance of physical stores in the Indian market, Xiaomi aims to capture the attention of consumers through brick-and-mortar channels and strengthen its competitive position.
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(via)
