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Chinese smartphone giant Xiaomi pushes bricks-and-mortar retail expansion in India despite headwinds, legal dispute with New Delhi

  • Xiaomi’s retail expansion plan will involve partnering with various domestic vendors to help sell the company’s other electronics products
  • The company currently has 18,000 physical stores in India, the world’s second-largest smartphone market behind China

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Xiaomi Corp’s latest strategy in India underscores the company’s resolve to regain market share that it lost because of heightened regulatory scrutiny and stiff competition. Photo: Shutterstock
Iris Dengin Shenzhen
Chinese smartphone giant Xiaomi Corp plans to expand its network of bricks-and-mortar stores across India, a strategy that belies its shrinking market share in the country and a protracted legal battle with New Delhi over returning US$676 million of the company’s frozen funds.
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Beijing-based Xiaomi – the world’s third-largest smartphone vendor in the first quarter, according to research firm IDC – will expand its physical retail network in the country after years of building up sales via e-commerce channels, Xiaomi India president Muralikrishnan B said in a Reuters report on Sunday, without elaborating on the number of stores to be added and the timeline for this roll-out.

He said Xiaomi intends to partner with various domestic vendors to help sell the company’s other products, such as televisions and security cameras, amid increased competition in the country. Xiaomi currently has 18,000 stores in India, the world’s second-largest smartphone market behind China.

Xiaomi’s bricks-and-mortar retail presence in India is “substantially lower” than its online sales profile, which has enabled its smartphone rivals in the country to gain market share, Muralikrishnan said.

Guests gather to check out Xiaomi Corp’s newly launched products at an event in Bangalore, India, on September 17, 2019. Xiaomi plans to partner with various domestic vendors to help widen its bricks-and-mortar retail presence in the world’s second-largest smartphone market behind China. Photo: AP
Guests gather to check out Xiaomi Corp’s newly launched products at an event in Bangalore, India, on September 17, 2019. Xiaomi plans to partner with various domestic vendors to help widen its bricks-and-mortar retail presence in the world’s second-largest smartphone market behind China. Photo: AP

Xiaomi’s latest strategy in India underscores the company’s resolve to regain market share that it lost because of heightened regulatory scrutiny and stiff competition.

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Once the top smartphone brand in India for five consecutive years, Xiaomi ranked fourth in the first quarter with shipments of 5 million handsets, making up 16.4 per cent of the market, according to data from IDC.

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