Off­line chan­nels to con­trib­ute 30% In­dia sales: Xiaomi of

The DQWeek (Mumbai) - - CHANNEL BONANZA - DQW NEWS BUREAU Bengaluru

Chi­nese smart­phone maker Xiaomi is step­ping on the gas to ex­pand its off­line pres­ence, a chan­nel that it ex­pects will con­trib­ute to about 30 per cent of its sales in In­dia by the end of the year.

The com­pany, which sells its prod­ucts through large for­mat stores, multibrand out­lets as well as its own Mi Homes, saw about 20 per cent of its sales in In­dia com­ing from off­line re­tail dur­ing Jan­uary-June 2017.

“In 2014, on­line sales of smart­phones were about 12 per cent and that has now grown to about 33 per cent. We ex­pect about 30-40 per cent of the smart­phone sales in In­dia to be on­line. That said, off­line con­tin­ues to be a dom­i­nant chan­nel and we are ex­pand­ing our pres­ence there,” Xiaomi In­dia Head Manu Ku­mar Jain told re­porters. He added that the aim is to take the off­line share to about 30 per cent by the end of the year.

“Via our three pronged strat­egy, we be­lieve we are a truly in­te­grated com­pany when it comes to im­ple­ment­ing our O2O strat­egy (on­line to off­line and vice versa),” Jain said.

The com­pany has seen a 10X growth in off­line sales in the first half of this year com­pared to the same pe­riod last year.

Cit­ing data from re­search firm IDC, Jain said Xiaomi has a 46.9 per cent share of the on­line smart­phone mar­ket in In­dia and 17.2 per cent share over­all.

Jain said the com­pany has part­nered 12 large for­mat re­tail chains that ex­panded Xiaomi’s reach to 2,000 points.

“Apart from that, we have a pre­ferred part­ners pro­gramme through which we reach over 600 points in 11 cities. The in­tent is now to scale that up to over 1,500 across 30 cities,” he said.

Jain added that th­ese points (in multi-brand stores) will be set up across cap­i­tal cities of var­i­ous states as well as tier I cities.

“Be­sides, we are adding more Mi Homes. We had said we want to have 100 Mi Homes in 2 years. We al­ready have 3 in Bengaluru and the next one is com­ing up in Delhi-NCR,” he said.

A few more Mi Homes will come up in Mum­bai, Hy­der­abad, Chennai and Pune.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.