Xiaomi Shifts Focus to Brick-and-Mortar Stores to Boost Sales in India

In an effort to regain its position in India's highly competitive smartphone market, Chinese tech giant Xiaomi has announced a strategic shift in its sales approach, Xiaomi's India president Muralikrishnan B revealed. After years of focusing on e-commerce channels, Xiaomi plans to focus on brick-and-mortar stores. The move comes as Xiaomi strives to revive its smartphone sales, which have lagged behind its rival, Samsung, in recent times.

• "Our market position in offline is substantially lower than what it is online. Offline is where you have other competitors who have been executing fairly well and have a larger market share," Muralikrishnan B said in an interview.

• Xiaomi lost its leadership position in India to Samsung, which has a more extensive portfolio of premium phones.

• While online sales make up 44% of India's smartphone market, Xiaomi sees greater potential for growth in offline retail.

• Only 34% of Xiaomi's unit sales in India this year have come from retail stores, compared to Samsung's 57%.

• Xiaomi plans to expand its store network beyond 18,000 outlets to tap into the offline market.

• The company intends to partner with phone vendors to offer additional products, such as Xiaomi TVs and security cameras, through its retail partners.

• Xiaomi acknowledges marketing challenges, as some partner stores prioritize rival brands over Xiaomi's products. The company aims to address this issue.

• Samsung currently holds a 20% market share in India, while Xiaomi has a 16% market share.

• Xiaomi's strategic shift shows its commitment to adapting to the changing dynamics of the Indian smartphone industry to regain its competitive edge.

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