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Selling every handset, not dumping units in secret warehouses: Xiaomi India

Xiaomi has acquired 57% online market share after dethroning Samsung from its top spot

IANS  |  New Delhi 

Xiaomi Redmi Y1
Xiaomi phones

Xiaomi, the Chinese and company, does not have big, secret warehouses in where it is dumping unsold inventory and is actually selling faster than any other brand in the country, has emphasised.

The exponential growth of in India, especially in the last two quarters, when it dethroned from the top spot, has alarmed the South Korean giant - a for years - which registered 27 per cent growth in its mobile business revenue for the financial year 2016-17, touching a mammoth Rs 343 billion.

Reacting to a question that its arch rival believes that "shipments are important but they don't tell the final market share", Jain said has the in place and whatever is being produced locally or being imported into the country is fast going off the shelves.

"Whatever is being produced locally or shipped into from us is actually being sold faster than any other brand, unless I am building big, secret warehouses and accumulating the unsold handsets there," Jain said.

"We don't have even a week's inventory anywhere in our system, unlike other brands who at times have two-three months of inventory. We are selling stocks coming in the second week of January right in the third week," Jain mentioned.

In a recent interview, Asim Warsi, India's Global Vice President, refuted reports that Samsung's market share has slipped in India.

"German research firm reports final consumption which is the most important measure of market share. Shipments are important but they don't tell the final market share," Warsi had said, adding that "the real share is what I sold out to my customers and here, we are pretty strong".

According to Jain, Xiaomi believes in the (IDC) reports because they track overall shipments -- both online and offline.

"The online market today has grown to 35-40 per cent in India. The other vendors are neglecting the and sharing reports that only tracks offline numbers. It is not fair," Jain said, without naming

"I won't comment on a particular brand but IDC is one research firm that gives actual numbers: Both from online and offline," the Xiaomi added.

According to the IDC, Xiaomi shared the top slot with South Korea's Samsung in India, with a market share of 23.5 per cent, in the third quarter of 2017.

In the fourth quarter, Xiaomi emerged a clear leader with 26.8 per cent market share, with Samsung second at 24.2 per cent market share.

For the entire year, however, Samsung, with 24.7 per cent share, was the leader and Xiaomi with 20.9 per cent stood second.

But Xiaomi is fast catching up.

The Beijing-based maker today has 57 per cent market share in the in the country. It is also the second-biggest offline brand with 11 per cent share. The company shipped nearly 9.6 million "Redmi Note 4" handsets last year.

"We launched eight in 2017 and all did exceedingly well. In some of the quarter results, the top three were Xiaomi units," Jain said.

Xiaomi last week launched two devices - Note 5 and Note 5 Pro.

Redmi Note 5 is a successor to Redmi Note 4 while Redmi Note 5 Pro is the first Xiaomi device to come with the "Face Unlock" feature and the latest Snapdragon

Samsung, which is gearing up to take on Chinese rivals in the online segment, in January launched two back-to-back "online exclusive" handsets - Galaxy A8+ and Galaxy On7 Prime.

"We will launch six-eight smartphones this year to continue the same legacy that we introduced in 2017 - great specifications and amazing quality at incredible price. We will try to cover all price points this year too," the Xiaomi informed.

With Mi Homes, Xiaomi is fast building its across the country.

"We started going offline aggressively about nine months ago and now, we are second-biggest offline brand at 11 per cent. We have only reached 20-25 cities so far - unlike big brands who are present in many cities. We will continue to build on innovative models to reach more users via offline expansion," Jain said.

Xiaomi has also tripled its services centres from 250 to 750 last year in the country.

"We will continue to provide superlative experience to Mi fans. If we continue on building great products, expand offline and improve customer services, we will sure grow much further this year," Jain said.

First Published: Mon, February 19 2018. 14:07 IST