Chinese mobile manufacturer, Xiaomi Technology India Pvt. Ltd. which has so far sold their products through Online sales will now providing their products through Offline stores in India to secure a top in the world’s fastest growing Smartphone market.
The Company is tying up with Redington (India) Ltd, one of the largest distributors of cellphones in India, for distribution across organized and unorganized channels in the country, said Manu Jain, India operations head at Xiaomi. However, the company refused to share any more info regarding the topic.
“We are experimenting with a new sales channel and getting into general trade to increase our reach and to make our products available more easily,” Jain said
The offline sales will initially be through 1,000-1,500 stores in 15 south Indian cities, including Chennai, Hyderabad, Bengaluru, Mysore and Visakhapatnam. The rollout will happen in phases and the first phase is expected to go live in the next 45-60 days. It will eventually make its products available across India by early 2016.
Xiaomi is known for offering smartphones at competitive prices by selling directly to consumers via online marketplaces with minimal marketing spending. The company entered India in partnership with India’s largest e-commerce company Flipkart and eventually launched its own online portal Mi.com.
The company said the move would have no impact on Xiaomi’s pricing in India. “We will not pass on the cost to consumers. We determine our product’s prices by keeping the online sales channel in mind,” Jain said.
“We will keep our supply chain lean and efficient to avoid higher costs. We are coming up with processes and technologies that will help us predict demand of smartphones on a weekly and monthly basis in offline stores that we will tie up with,” he added.
Jain expects offline sales in India to eventually contribute 25-30% of the overall numbers. Xiaomi, which has been in talks with Taiwanese contract manufacturer Foxconn to make its smartphones in India, is also looking to introduce air purifiers and televisions in India.