Xiaomi China鈥檚 offline sales may double
Print Edition
XIAOMI Inc aims to sell double the number of handsets offline in China this year than analysts estimated it sold offline globally last year, an internal document showed, signaling a shift away from an online-focused strategy copied by resurgent competition.
The online-driven sales model propelled Beijing-based Xiaomi to second among Chinese smartphone vendors in 2015, just three years after releasing its first handset and five years after inception, data from researcher TrendForce showed.
But Xiaomi missed its global shipment target by 12 percent, selling 70 million handsets in a year when local rivals such as Lenovo Group and top player Huawei Technologies Co countered at home with similar Internet-only sales.
Last year also saw growth slow for the first time in China’s smartphone market, the world’s biggest and where Xiaomi makes most of its sales. In response, Xiaomi aims to ramp up sales via retailers and raise its number of “Mi Home” stores to 50 from 20, said a person close to the matter.
“Xiaomi is trying to expand offline rapidly,” said the person, who declined to be identified as the information was confidential. “But mi.com is still the core business,” the person said, referring to Xiaomi’s website.
Analysts estimated 40 percent of Xiaomi’s 2015 global total, or 28 million smartphones, was sold offline.
This year, Xiaomi aims to sell 58 million smartphones in China alone through retailers including Suning Commerce Group Co, Gome Electrical Appliances Holding Ltd and Beijing Digital Telecom Co’s D.Phone, showed an internal document reviewed by Reuters.
Privately held Xiaomi, in response to a request for comment, said it had not set any performance targets for this year.
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