Chinese manufacturers are already capturing significant market shares in India. Last year companies like Oppo, Vivo, and Honor did well in the market. And in the current scenario, Xiaomi, one of the popular Chinese brands in India is also aiming to grab about 50 percent share of the burgeoning online market.
Xiaomi's founder and CEO, Lei Jun in an exclusive interview with ET has further revealed that the company will be expanding manufacturing in India especially "to resolve issues around the shortage of supply in the face of high local demand." Further, ET notes that the company may even look at exports from India. However, the company will first fulfill Indian consumer needs before taking the step further in exporting business.
In any case, outside China, India is the biggest market for Xiaomi. And the company is taking the advantage. Xiaomi has, in fact, become the number one selling smartphone brand in the online market, with 29.3 percent in India.
According to some statistics, in 2016 Xiaomi sold more than 4 million devices. This year the numbers might just go up. Xiaomi has plans to launch a lot of smartphones in many categories for the Indian market. While the Redmi Note 4 was introduced earlier, we are seeing strong demand for the device. In March 2017, the company launched the Redmi 4A and while it has just been few days since the launch, the company has already sold over 250,000 units of the smartphone on Amazon.com within four minutes. Moreover, 1 million customers had pre-booked the device.
Lei Jun said, "We are hoping for offline sales to be 50% of our total sales at some point in the future."
Amid this developments, Xiaomi locally makes 95 percent of the phones it sells in India. While the company already has two manufacturing plants in India, Xiaomi could likely set up a third plant in as well, basically to cater to the huge demand for its smartphones. It might not just be the plant, Xiaomi could also setup offline stores to make the devices easily available for purchasing.
Well, the company sure looks to be pretty serious about delivering more to the Indian consumers and simultaneously grabbing a good chunk of the market share in the process. Just to recall, Xiaomi grabbed the No 2 position in smartphone segment as of December 2016, with 10.7 percent market share.