Xiaomi’s decision to become an offline retailer could seriously hurt the competition

Xiaomi announced that it wants to push 50% of its sales to offline channels i.e. brick and mortar stores or physical retail outlets. While this has been talked about for quite some time now, it seems like Xiaomi is finally set to take the big step in a few months. This is a big move by the company in a market where e-commerce sales are everything. Companies take the online route to save marketing costs and other charges that arise while displaying their products in a store.

But it seems like Xiaomi is well aware of the fact that online sales alone won’t cut it in a market like India. Several citizens are still not tech savvy and do not trust online retailers, and with good reason. So having a physical retail outlet for such users makes complete sense. While this might drive up the costs of marketing for Xiaomi, it could prove to be a clever move in a couple of years from now.

Change of fortunes for Xiaomi?

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