August 8, 2015: In a major move to garner a larger share of India’s smartphone market through offline sales, Xiaomi, the Chinese company is tying up with Reddington for distribution.
So far, the company concentrated only on online sales, first thru Flipkart and later with Amazon and other online portals.
Xiaomi smartphones, notably, the Mi3 that the company started its marketing in India, used to be get sold out within seconds.
And later their Redmi and Mi4 too were sold within seconds in the flash sale on Flipkart.com.
Manu Jain, India head of Xiaomi said, “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.”
The sales will start initially through 1,000-1,500 Xiaomi stores in South Indian cities like Chennai, Bengaluru, Mysore, Hyderabad and Visakhapatnam.
Xiaomi has four fast-selling models currently – the Redmi 2, Mi 4, Mi 4i and Mi Pad priced at Rs 5,999, Rs 14,999, Rs 12,999 and Rs 12,999 respectively.
When asked if the prices would go up considering the commissions to be paid to the distribution channels, Jain said that they are not going to impose the cost on the consumer. And the cost would remain the same as online for all their products.
Jain added, “We will have to give out margins, but the business also expects a return on investment.
“But if you can predict demand more accurately, then the same money can generate much higher sales, profit and return on investment (ROI), rather than using it for blocking inventory,” he said.
India’s largest network providers Airtel and Reliance Jio are coming up with cheap 4G handsets of Rs 4000 during their launch of 4G in December.
It would be interesting to see how Xiaomi will cope up to enhance its sales for the India 4G market.