Technology company Xiaomi has put in place a strategy that includes a stronger push to sell through its own Mi online store and has made changes to its distribution model, as it seeks to continue growth in markets outside China.

Lei Jun, Founder of Xiaomi, is not yet a Jack Ma (founder of Alibaba) but the aspirations of both have a common theme — to revolutionise and disrupt the existing lines of business that they are in. While Ma has a headstart on this journey (with Alibaba being the world largest IPO), Jun has started off strong but not yet quite in that league.

To get into that league, Xiaomi is looking at the world’s second largest cellphone market and whose Internet penetration is set to be number two, after China. Since the release of its first smartphone in August 2011, Xiaomi has gained market share in mainland China, grabbed significant marketshare from Apple and expanded into developing a wider range of consumer electronics, such as TVs.

Now, Xiaomi is looking to recreate that magic in India. “Last year was interesting and our numbers show that,” Manu Jain, India head of Xiaomi, told BusinessLine .

He substantiates saying that in the third quarter last year, Xiaomi crossed sales of 1 million units and repeated this feat in the fourth quarter, fuelled by the uptake of its Mi range of smartphones and tablets. “What is heartening is that this is our first full operational year in India,” says Jain. The company, however, did not disclose its total sales last year.

So, what led to that growth? The company launched an India-focused phone, at a time when most others either bring their phones to India or just stamp their brand names on them. Xiaomi, which started selling only through Flipkart, has started selling through other channels such as Amazon, Aitel stores and even brick and mortar distributors like Redington.

Different strategy Unlike other device makers, who rely on at least four levels of distributors, Xiaomi is looking to adopt a different strategy to get its product into the market. “Firstly, we are going directly to retail to cut out the margins and, in turn, pass on the benefits to the consumers,” explains Jain.

Secondly, Xiaomi will sharpen its focus on its own Mi online stores to sell its wares, a strategy which has paid off rich dividends in its home market.

While the company does not share numbers, Jain points out that on certain days it gets 1 million unique visitors to its website.

Does this mean that the company will sever its ties with other websites? Jain clarifies that it is not an ‘either’ ‘or’ option but that all channels are needed for being successful in India.

The extra push for Xiaomi is coming at a time when new entrants in the smartphones segment are competing intensely. Recently Chinese peers like LeEco has made a big splash with its entry into India and others like Huawei, Vivo and home-grown phonemakers are vying for a sizeable chunk of the Indian smartphone segment, which crossed the 100-million mark in 2015, according to IDC. Samsung leads in the India market with a 26.8 per cent marketshare, according to IDC India data.

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