CHINA TOPIX

04/28/2024 05:17:03 am

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Xiaomi Announces Partnership With Just Buy It, InnoConn

Xiaomi is planning to open 200-300 retail stores to broaden its appeal to older Chinese customers and families.

(Photo : Reuters) Xiaomi has partnered with InnoConn and Just Buy Live to broaden its reach to customers.

As part of the company's effort to capitalize on its offline sales, Chinese tech giant Xiaomi has announced that it is partnering with two companies. The two companies are InnoConn, which is a Foxconn unit, and Just Buy Live, which is an online marketplace based in India.

Tech analysts agree that the partnership will help Xiaomi expand to customers who are based in smaller regional cities and towns.

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InnoConn and Just Buy Live will implement Xiaomi's unique marketing strategy called direct-to-retail. A marketing model which was specifically tailored for the Indian market. Applying this model, the two companies will buy products from Xiaomi and then directly supply it to regional retail stores and outlets.

By adopting this marketing model, Xiaomi and its partners are essentially cutting multiple middle players which in turn could keep the price of its products low.

Xiaomi's partnership with InnoConn and Just Buy Live essentially gives the tech giant access to about 5,000 stores ready to market its products at a moment's notice, according to NDTV. As part of its expansion plans, the company aims to increase that number of offline stores to at least 10,000 within the next few months.

In a statement acquired by Economic Times India, Xiaomi India head of operations Manu Jain said, "We're making it comfortable for people in smaller cities, tier 2-3 towns, where internet infrastructure is not yet developed, to purchase our smartphones."

Xiaomi has revealed that currently, about 30 percent of its sales output in China comes from brick-and-mortar stores. The company added that in India, physical or offline stores accounts for 10 percent of its market sales output.

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