Xiaomi opens Paris store to gauge demand in Europe as it eyes US expansion

Chinese smartphone maker Xiaomi has opened a store in Paris and planning for more shops in France, Spain and Italy, testing the appetite of consumers in developed markets as its executives consider a US expansion.

“Every morning I think about the US market and when we’ll launch there,” Xiaomi senior vice-president Wang Xiang, who heads global operations, said on Tuesday in Paris. “But 2018 is the year of Europe.”

With its plans for an initial public offering at the filing stage, Xiaomi is looking to expand into new markets as it consolidates its position at home and in countries including India, Russia and Indonesia. In 2017 it launched in Spain, where it has four stores. Its first French shop, in Paris, opened on Tuesday.

The US may prove to be a whole different ball game. A tough stance by President Donald Trump against Chinese technology companies has already caused turmoil for the likes of ZTE and Huawei.

“I don’t see any reason the US will block us — we’re an internet company founded by engineers who studied in the US and worked at Google and Facebook,” said Wang, a former Qualcomm executive. “After the IPO [initial public offering] we’re an open book, for regulators and for consumers.”

Xiaomi does not sell phones in the US, but does ship products such as portable batteries and electric micro-scooters, through Amazon and Walmart.

The US market, but also the UK, is more carrier driven, which involves more phone customisation, while Xiaomi’s strategy relies on making one model and selling it across the globe at roughly the same price, Wang said.

In Europe, Xiaomi’s biggest challenge will be convincing consumers its devices are topquality though priced more affordably than Samsung and Apple, Wang said.