Xiaomi not concerned by economic slowdown
Reddy expects the total number of stores having a Xiaomi device to exceed 10,000 by the end of the year.
“The first half of the year has passed. And I think in the first half of the year, the market has grown by about 7-9%. Based on that momentum, we believe that going into the festive season also you will see the same trend continue,” said Raghu Reddy, head of categories at Xiaomi.
Speaking at the launch of the company latest offering, the A3, Reddy said that he believed mobile phones had now become indispensable, and hence were less susceptible to the slowdown. “[Smartphones] have become an essential category. And we believe that it will probably be the last sector to be impacted,” he said.
Reddy said that Xiaomi expects the growth not to be restricted to their smartphones, but extend towards other products on their catalogue as well. “We expect everything- starting from phones, TVs, fitness wearables, power banks, audio- all of these categories to do well,” he said
Speaking about the growth driving the sector, Reddy said that the company had observed two distinct sources- existing Xiaomi customers, and second or third-time smartphone buyers. “They've used their phones and they demand more from their devices, and they're willing to increase their budget for it. That's one of the reasons why the overall average selling point (ASP) of the market is also started trending upwards,” he said.
The Chinese smartphone giant said it will continue its offline expansion in India. Currently, Xiaomi operates above 2,000 exclusive Mi Stores across various tiered cities and towns, along with 78 Mi Homes. They also have tie-ups with more than 6,000 multi-brand outlets. Reddy expects the total number of stores having a Xiaomi device to exceed 10,000 by the end of the year.
“While we continue to hold our ground online, we're also going beyond the bigger cities. We believe that in order for us to do justice to us as a brand, we need to be presenting on the tier three, four, five towns,” said Reddy, adding that company aims to achieve a 50-50 ratio between its online and offline sales.