Xiaomi entered the Indian smartphone market back in the year 2014. Within two years, the company saw robust growth and and was able to generate over 1 billion in revenue last year in India. The second biggest smartphone maker now seems to have bigger plans to increase its presence in the country.
Xiaomi’s Chairman and CEO, Lei Jun in an interview with Bloomberg told that the company will invest $500 million in India over the next three to five years. The Chinese conglomerate had already invested around $500 million since ts debut two years ago. “Xiaomi has had a challenging few years, but its business is once again expanding at a healthy clip,” Lei said in the interview. The co-founder expects to double the revenue this year to $2 billion in India.
Xioami, that was at once known as the ‘Apple of China’ is now struggling hard in its home country against the local rivals Oppo, Vivo and Huawei. “We faced many challenges. Many negative reports about us. But it was never as bad as it was made out to be. We have gone back to healthy growth. We will resume rapid growth in the next two years,” Lei said.
The Chinese smartphone manufacturer however believes that its efforts in India will push positive results. Xiaomi was able to get rank behind South Korean consumer electronics company Samsung in the ‘Indian market shipments’ last year. The company recently opened a second factory in the country to meet the high local demand. With the new production outlet, company is able to manufacture one phone every second during ‘operational hour’.
Essentially, Lei’s company is also targeting 50 percent increase in its offline sales this year, to make a shift from its ‘traditional reliance’ on flash sales to fix supply demand. Xiaomi also mentioned that it aims to provide around 20,000 jobs in India over the next three years.
The Chinese manufacturer so far has been seeing remarkable success in India, but its local rivals are making similar attempts to gain substantial shares in the country’s smartphone market. What remains to be seen is whether Xiaomi’s simple strategy of delivering smartphones at an affordable cost will help to sustain in the long run.