Xiaomi eyes retail sales to add volumes

Xiaomi, the leading smartphone brand from the stable of Hongkong Stock Exchange-listed Xiaomi Corporation, which initially used to rely on online channels, has been increasingly moving towards offline sales, that is retail sales through physical outlets. Even one year ago, Xiaomi’s offline sales in India used to hover around 5 per cent and at present offline sales contribute 30 per cent of its overall sales in the country, said Anuj Sharma, the newly appointed chief marketing officer, Xiaomi India. Interestingly, for other smartphone brands, normally 70 per cent of overall sales comes from offline channels.

While the problem of time lag between order received and delivery from brick and mortar outlets still remains, the company is doing everything possible to address the issue and get over this problem. The best way, according to Sharma, to resolve this is through ramping up supplies to the outlets. And that, in turn, can be done through ramping up local productions.

“At present we have six plants to manufacture smartphones in India. We are working on to ramp up production and increase supplies. Interestingly, the brand, at present, is sold offline across as many as 40 cities and towns. We are aggressively working on to reduce the window between online launch of our smartphones in India with the launch in brick-and-mortar stores. That’s crucial. Once we can do that, the contribution of offline stores to total sales will grow significantly. At the end of the day we must ensure that there is no shortage of supplies in the brick-and-mortar cellphone outlets,” said Sharma.

Interestingly, the company has adopted a multi-channel strategy in India and it has been paying off with the share in the offline sales increasing. The company has recorded its highest ever shipments during the April-June quarter. Xiaomi has recently launched three new smartphone models – Redmi 6, Redmi 6A and Redmi 6 Pro.

“At Xiaomi, we always thrive to push our boundaries and make higher level innovation accessible to all our users at honest pricing. The roll-out of Redmi 6A, Redmi 6 and Redmi 6 Pro establishes our true philosophy. With the only smartphones in its segment with 12 nm architecture, we hope Redmi 6A and Redmi 6 will be worthy successors in the market with their performance. Redmi 6 Pro with AI dual camera and an astounding two-day battery is also another proof point of Xiamoi’s focus on proving best specs, highest  quality at right pricing,” sai Sharma.