Xiaomi has been one of the first companies to strictly stick to the Online sales channel and most of their sales were garnered after the company successfully created an image for itself on the world wide web. Now with the declining sales and increased competition from other smartphone manufacturers Xiaomi has decided to enhance its offline presence with more than 5000 offline outlets.
In order to do so, Xiaomi has announced that it will partner with Just Buy Live and Innocomm, companies that operate the offline sales model by leveraging the e-commerce model. The DTR (direct-to-retail) model seems like a clever idea to retain the offline profit margins by avoiding the middle man and instead letting the retailer order directly from the main distributor. This move will help Xiaomi mark its presence in stores like Sangeeta, LOT Mobiles, and many other local retailers.
This is what Manu Kumar Jain, India Head, Xiaomi had to say, “We are primarily an e-commerce company and we have brought our learning from the online model to our offline model. We have chosen Just Buy Live and Innocomm because of their unique models that distribute directly to retailers. I believe that this strategic alliance will strengthen Mi India’s presence across India. As we expand to more than 5000 offline outlets, it allows more people to experience our products and purchase them easily.”
Xiaomi’s entire line-up will be up for grabs in the retail stores and this will help Xiaomi magnify their presence in the major Tier 2 cities. The recently launched Mi Max will also be available in the stores starting from 13 July. The best part of the offering is that the offline pricing will be similar to the online pricing.
While companies like Yu and LeEco initially relied on the online sales channel others like Oppo, Gionee and Vivo worked to ramp up its offline presence. In fact, Xiaomi had also announced earlier this year that they will be opening up 300 retail stores in China as well. The new stores should actually help Xiaomi to increase its foothold and with the offline push, they should be able to grow beyond the saturation point.