Xiaomi has announced that it is currently experimenting with offline selling in India, bringing its smartphones to brick and mortar stores as it eyes a bigger chunk of the Indian market.
The company is tying up with Redington, only of the largest mobile phone distributors in the country in order to help it distribute devices across the organised and unorganised channels.
Xiaomi will work on a commission based model to sell devices offline and its devices will initially be available across 1,000 – 1,500 stores in 15 south Indian cities.
The roll-out will be phased, with the first phase expected to go live in the next 45-60 days but offline selling is expected to hurt the company’s already minimal profits.
“The cost of doing offline business is of course higher… the margins will be affected but not much,” said Manu Jain, Head of Xiaomi India.
In China too Xiaomi has an offline presence which contributes to 30% of sales in the country. In India Xiaomi expects offline sales to contribute between 25 – 30% of sales.
Apart from smartphones, Xiaomi is also looking to bring its air purifiers and televisions to India and is even in talks with contract manufacturer Foxconn to assemble devices locally.
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