Chinese technology company Xiaomi plans to open 100 exclusive offline retail store across India in the next two years.
Chinese technology company Xiaomi plans to open 100 exclusive offline retail store across India in the next two years. The move to strengthen its forward linkage comes a month after the company set up its second factory in the country, in Andhra Pradesh’s Sri City.
Xiaomi will open its first offline Indian store in Bengaluru on May 20. The company, which has 72 Mi Home stores (offline stores) in China, is planning to replicate its China success story in India by opening 100 stores across the country. Manu Kumar Jain, managing director for Xiaomi India, told FE, “The next set of Mi Homes will be opened in Delhi, Mumbai, Hyderabad and Chennai. When we open all 100 stores, we should be there in Tier 2 and Tier 3 cities as well.” When asked about the existing retailing partnership with retailers, he said, “We will continue with them. Though we sell on Mi.com, we still continue selling on Flipkart and Amazon”.
By opening more Mi Home stores, the company plans to weed out inefficiencies, multiple layers and cost involved in traditional distribution process. Jain said, “In a normal distribution process, a consumer spends 2X of what the phone actually costs. We are trying to reduce the number of partners between us and consumers. With Mi Homes, we are going directly to the consumers.”
Recently, the company said that its India revenue for FY16 had crossed $1 billion and the company aims to achieve $2 billion in the current financial year. Xiaomi has a 14% share in the Indian smartphone market and sells over a million phones per month in India.
While the first Mi Home opens on May 20, pre-booking starts on May 16 when consumers have the option to pre-book a Xiaomi smartphone from Xiaomi’s India website by paying an advance payment of Rs 1,000 and collect their devices from the store when it opens to the public.