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Xiaomi, a renowned smartphone manufacturer, has recognised the importance of expanding its offline presence in India in order to boost smartphone sales. While the company has built a considerable foothold in the Indian market via e-commerce platforms, it intends to broaden its reach by extending its offline footprint. Xiaomi is already present in 18,000 offline outlets across the country.
The Company plans to appeal to a bigger client base and better its competitive position in India by extending its offline distribution network. In the face of strong competition from rivals such as Samsung, the firm hopes to restore momentum and reclaim its place as one of the top smartphone brands in the country.
The move to focus on offline sales underscores Xiaomi’s aim of expanding into new market segments and catering to customers who want to buy handsets through traditional retail channels. The Company hopes to increase its market position and regain market share in the Indian smartphone industry with its wide distribution network and a renewed focus on offline sales.
Muralikrishnan’s statement emphasises the reality that Xiaomi’s offline retail market position is now weaker than its online sales. While the Company has a strong online presence, the physical industry has a diverse competitive landscape, with other players performing well and having larger market shares.
With around 600 million smartphone users, India has a considerable number of smartphone users. Despite the rise of Internet sales, the vast majority of smartphone purchases in India are still made in physical locations. Only 44 percent of total smartphone sales in the country are made online.
Xiaomi Retail Strategy
This provides a tremendous chance for Xiaomi to enter the offline sector and reach a bigger client base. The business hopes to capitalise on the propensity of many Indian consumers to purchase smartphones through physical retail outlets by focusing on growing its offline presence. This strategic decision aligns with the intention of regaining market share and effectively competing against other established competitors in the offline area.
According to Counterpoint Research, 34 percent of Xiaomi’s sales in India this year have come from retail locations, whereas Samsung earns 57 percent of its sales from offline channels. Recognising the offline market’s potential, The Company intends to strengthen its collaborations with phone vendors in order to offer a greater range of products, such as Xiaomi TVs and security cameras. This strategy enables Xiaomi to use its existing shop network to increase sales of these new products.
The company plans to extend its shop network beyond the existing 18,000 retail stores in India in order to boost its offline presence. As a result, the business hopes to address a marketing issue in which some outlets prominently display rival brands alongside Xiaomi products while utilising branding. The business aims to improve brand awareness and assure a more uniform and targeted marketing approach in its partner stores by correcting this problem.
The company hopes to regain momentum in the Indian smartphone market by focusing more on offline sales and growing its store network. This strategic decision allows the corporation to reach a large number of Indian consumers who prefer to buy smartphones in physical retail outlets.
Xiaomi, Biggest Smartphone Brand in India
According to Counterpoint Research, Samsung has overcome Xiaomi to become the biggest smartphone brand in India, with a 20 percent market share compared to 16 percent for Xiaomi. Analyst Tarun Pathak emphasises the offline channel’s relevance in India, as consumers prepared to spend more prefer the in-person experience and feel of quality products.
In reaction to this development, Xiaomi’s India head has stated that the company intends to engage more shop promoters. These salesmen are critical in drawing customers, pitching products, and closing sales in retail establishments. The company plans to increase its promoter base to 12,000 by the end of the year, greatly improving its in-store sales support compared to early 2023.
The business aims to increase its presence and sales performance in physical stores by extending its team of store promoters. This strategy is in keeping with the growing importance of the offline market and the demand for personalised sales support, especially for high-end products.