As Samsung Struggles, Xiaomi Intends to Increase Smartphone Sales in India

According to the president, China's Xiaomi, which has lagged behind South Korea's Samsung in smartphone sales, will concentrate on growing its retail sales in India after years of significant investments in e-commerce. With 600 million smartphone users, India is one of the fastest-growing marketplaces in the world. In recent years, e-commerce sales through Amazon and Walmart's Flipkart have soared in India, assisting Xiaomi and other companies in growing there.

Xiaomi Online sales of smartphones

While online sales of smartphones currently account for 44% of all sales in India, brick-and-mortar sales still account for the majority of sales, and Xiaomi anticipates additional growth in this market.

Xiaomi's chief of operations in India, Muralikrishnan B, stated on Friday that "our market position offline is significantly lower than what it is online." More competitors have been performing relatively well and holding a higher market share offline.

According to data from Hong Kong-based Counterpoint Research, only 34% of Xiaomi's unit sales in India this year came via physical stores; the remaining 64% were generated by the company's websites, which have historically been its primary source of sales. In comparison, retailers account for 57% of Samsung's revenues.

Xiaomi intends to increase its retail network

Beyond the current 18,000 locations, Xiaomi intends to increase its retail network and partner more frequently with phone manufacturers to provide additional items, such as Xiaomi TVs or security cameras, where Muralikrishnan claimed there is less fierce competition.

According to him, Xiaomi discovered that some of its partner retailers that prominently displayed its bright orange branding outside of stores were doing the same inside, a marketing issue the business will solve.

Xiaomi is making an offline effort months after losing the top spot to Samsung

Xiaomi is making an offline effort now, months after losing the top spot to Samsung, which had a more extensive selection of high-end, currently in style. In India, the South Korean company holds a 20% market share, while Xiaomi, which has typically specialised in low-cost phones, holds a 16% share.

Conclusion

Xiaomi aims to engage more shop promoters to attract, market, and sell phones to potential customers inside stores. According to Muralikrishnan, it seeks to triple the number of promoters from early 2023 levels to 12,000 by the end of the following year. The $673 million (almost Rs. 5,500 crores) in bank assets that a federal body has frozen since last year represent another serious barrier for Xiaomi in India. According to the agency, Xiaomi sent unauthorised payments to foreign organisations under the pretence of royalties. The business disputes any wrongdoing.