Xiaomi aiming to double Chinese store sales this year

by: Rob TriggsJanuary 21, 2016
613

Xiaomi Mi Home store

Xiaomi, the rising star of the smartphone market, missed out on its sales targets for 2015 by quite a margin, leaving some to wonder if the Chinese brand’s innovative business strategy was beginning to hit its limits. To continue its push this year, Xiaomi is reportedly looking to double the number of smartphones that it sells through physical retail stores in China, according to an internal document.

Xiaomi had quickly claimed a significant market share in China and other emerging markets due to the low cost but decent specifications of its smartphones. This is possible due to the company’s focus on online sales, which allows Xiaomi to push costs down and keep tighter control over its stock levels. However, this business model has been imitated by many of its competitors and this increasing competition may go some way to explain why Xiaomi’s growth slowed for the first time ever in China during last year.

“Xiaomi is trying to expand offline rapidly … But mi.com is still the core business,” – anonymous insider

According to a person close to the company, Xiaomi is planning to up its retail presence by increasing the number of its “Mi Home” stores in China from 20 to 50 throughout the year. A more noticeable physical presence would certainly set Xiaomi apart from the field of low cost smartphone retailers and could help the brand edge into the very top tier of the market. Not to mention showcase the company’s growing range of accessories and other electronics products. However, this extra expense may alarm some analysts if sales continue to slow throughout 2016, given the reportedly slimmer than usual profit margins associated with Xiaomi’s business model.

xiaomi-logoSee also: (Update: 70M phones sold) Xiaomi misses expectations, makes investors wonder and worry25

Analysts estimate that roughly 40 percent of Xiaomi’s 70 million or so sales in 2015 came through offline stores, so we could be looking at 56 million retail sales in China alone this year, if the company can reach the ambitious reported target. Xiaomi is used to being one step ahead of the game, but now it looks like the company has to be the one to adapt to the competition.

  • like the Chinese store because it almost amazing like this place I like.

  • Remy Cajallena

    No! online retailing should be the only business model!

    • balcobomber25

      ……why?

      • Remy Cajallena

        Well not really but at least it should be more mainstream than it already is…

  • Biga173rd

    Wow is it me or their stores looks like some mega super company’s store from from a company from Cupertino?

    • sithishs

      Because stores featuring merchandise on wall shelves and tables is a unique thing?

      • Biga173rd

        No look at tables,the posters, the way they display their phones too similar to an apple store. I seen other store that don’t look or mimic apple.

        • Biga173rd

          Yup

          • Biga173rd

            No trying to defend Apple I hate apple but just saying Xiaomi is clearly coping Apple lol.

          • balcobomber25

            Xiaomi copies a lot from Apple but this I see only a minor resemblance. Looks more like and Oppo Store to me:

          • Biga173rd

            OK lol

          • Ionut Johnny

            Don’t try to argue to Apple fan boy to death, it will be the same outcome.

          • Biga173rd

            Please I eat sheeps for breakfast lol

        • Biga173rd

          Take a look at a Sammy store not a blind carbon copy but their on style

  • sithishs

    Well good luck, they basically killed their international market interests by making it so frustrating to unlock their bootloaders. No thanks.

    • balcobomber25

      They killed your interest. Most people who buy cell phones have no clue what a bootloader is.

      • MaxPower

        Well said