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Xiaomi India Expecting 25% Sales from Offline Channels in 2017

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The Chinese smartphone brand, Xiaomi has claimed 22% market share in the Q3 2016. All this is achieved by just selling most of their smartphones via online channels. Last year, the company started selling their devices via offline with the Redmi 3S Plus. Compared to other Chinese brands like OPPO, Vivo, and Gionee; Xiaomi still has a limited presence in the offline market. Now in 2017, the company is keen to increase its offline presence in the world’s second largest smartphone market. As of now, only 10% sales come from offline stores and but by the end of this year, and the company is targeting to increase the share to 20-25%.

While the affordable pricing is the backbone to the Xiaomi’s success in India, the company might not offer the same with the offline sales. Even the recently launched Redmi 3S Plus is almost priced Rs. 2,000 higher than the online exclusive variant, though it additionally comes with a fingerprint sensor. Within the next few months, the company will be ramping up their distribution network in the cities like Delhi, Bengaluru, Chennai, and Chandigarh. Manu Kumar Jain, Head of Xiaomi Head also hinted about opening their own branded stores but not anytime soon.

As of now, the company is selling their smartphones via 8,500 retail outlets across the country. However, the leading online stores along with Mi.com brings 90% of sales. To make the offline exclusive devices affordable, the company is said to cut down two to three layers of the distribution network. Recently, the company launched the Redmi Note 4 smartphone in the market and is sold via flash sales through Flipkart and Mi.com. Xiaomi is also expecting to double up the 3.6 million sales of Redmi Note 3 with the newly Redmi Note 4. As of now, there is no information whether the device will be made available in the offline market or not.

The Redmi Note 4 sports an all-metal body and comes in Gold, Black, and Dark Grey color options. It features a 5.5-inch Full HD (1920 x 1080 pixels) display and 64-bit Snapdragon 625 octa-core SoC. The device is available in three different options – 2GB RAM + 32GB storage, 3GB RAM + 32GB storage, and finally the high end variant with 4GB RAM + 64GB storage. In the camera department, there is a 13MP rear camera with PDAF and a 5MP front camera with f/2.0 aperture for selfies. The device runs on Android 6.0.1 Marshmallow based MIUI 8 out of the box and is expected to receive the Android 7.0 Nougat update soon.

On the back of the device, we can find the fingerprint sensor. It is backed by a 4,100mAh battery that supports fast charging with the 5V/2A power adapter. The base variant of the device costs Rs. 9,999 and the 3GB and 4GB RAM variants are priced at Rs. 10,999 and 12,999 respectively. In 2016, the company also crossed $1 billion revenue in 2016 that too in its second year of operations. With the Government of India’s Make in India, the Chinese brands also established up their own manufacturing plants in India. On the other hand, the market share of the Indian smartphone brands is decreasing day to day. None of the Indian brands is placed in the top 10 list of global smartphone manufacturers.

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