Xiaomi has announced the opening of its first offline retail store in the Delhi-NCR region. Mi home, as the Xiaomi stores are called, will offer the whole portfolio of products launched by Xiaomi in India. The store boasts of a unique culture wherein the customers can walk-in and experience the Xiaomi offerings first hand, without any time constraint. “Customers are free to experience the products for as long as they like, there will be no sales push from the Xiaomi staff whatsoever,” says Manu Kumar Jain, Xiaomi India Head. The Xiaomi store in the National Capital Region will be open for its first sale, starting 10 AM on August 19.
Xiaomi had started expanding its offline business from January this year. Since then, the Chinese smartphone maker has seen a 10x growth in its offline sales. As per the company’s data, offline sales of Xiaomi now account for 20 percent of its overall sales in the country. Xiaomi aims to increase this to 30 percent. For this, the company is following a three-channel strategy by partnering with Large Format Retail Partners, Mi Preferred Partner Stores and opening its own retail stores in the form of Mi homes. The business rationale behind the Mi home is simple, Xiaomi wants to cut down on the middlemen’s profit that adds to the final cost of its products. The result is a cheaper end-product for the consumer.
Currently, Xiaomi is working with 12 LFR partners across 12 states of India, some of which include Sangeetha, Poorvika and BigC. Additionally, Xiaomi serves the offline customer base through Mi Preferred Partner Stores. Spread across 11 states, 600 plus of these stores get Xiaomi stocks on priority. Apart from the partnerships, Xiaomi has 3 operational Mi Homes as of now. The one to be opened in NCR will be its fourth and biggest till date in terms of the area.Mi Home in Ambience Mall, Gurgaon. (Image: News18.com)
The big question that looms is how the company will cater to the increasing demand for its products through the various channels, given that its online sales are mostly over in a flash. In an interaction with News18 Tech, Manu Jain explains the company’s current business strategy to tackle this:
“We have ramped up our supplies since the last 6 months. Priority is given to Mi homes and the online Xiaomi channels. An optimum stock is always kept aside just for the Mi homes."
How is the ‘optimum’ quantity judged?
What if the Mi Home goes out-of-stock?
“Just in case a particular product is out of stock at a Mi Home, an F-code will be issued to the walk-in customers using which they can buy the product online through the Xiaomi website.”Mi Home in Ambience Mall, Gurgaon. (Image: News18.com)
Delhi-NCR’S first Mi Home will be open for the public starting August 19 at the Ambience Mall, Gurgaon. Pre-bookings through the store have already been started, which will ensure the availability of the product to the buyers. Those who pre-book can simply walk-in to purchase their choice of Xiaomi product, once the store is open.