Since its entry into India, Xiaomi has followed the online-only distribution model, in many cases setting a precedent for plenty of other Chinese manufacturers. It was a smart business decision in some ways as it reduced the initial cost of entry into the market, along with avoiding much of the red-tape that is involved in setting up shop in India if you’re a foreign country. After having crossed the USD 1 billion mark in sales in India alone, Xiaomi significantly ramp up its offline distribution model. Xiaomi hopes that they will be able to gather as much as 25% of their annual turnover through offline sales.
“Till now, our focus was on online sales. Now, we will focus both on online and offline distribution. We expect our share from offline to grow from current 10 per cent to 20-25 per cent by the end of this year. This is our aspiration,” Xiaomi India Head Manu Kumar Jain said. Currently, Xiaomi earns almost 90 per cent of its revenue in India through online sales, but Jain said that Xiaomi will “go deep and we will have much deeper penetration in cities like Delhi, Bengaluru, Chennai and Chandigarh.”
After having launched the Redmi Note 4 to extremely high demands, the company hopes to double the number of units sold in comparison to the Redmi Note 3. That’s at least 7.2 million units sales target, given that the Remi Note 3 sold 3.6 million units between March and December 2016. The Xiaomi Redmi Note 4 comes in various variants starting at Rs 9,999 for the 2GB-RAM/32GB-storage model. The other two variants; 3GB-RAM/32GB-storage and 4GB-RAM/64GB-storage are priced at Rs 10,999 and Rs 12,999, respectively.
Xiaomi entered the Indian mobile market at a time when the industry was starting to see devices hit a price ceiling. Xiaomi’s offering of top-tier components packed into a phone with a mid-range price restarted the price-wars. This also turned the attention of other players towards India as a potential market. While many Chinese brands still struggle to be viewed favourably by Indian consumers, Xiaomi has had plenty of success cracking the market.