Samsung facing life threat from Xiaomi Mi in India

Samsung is smart phone leader in India. It has been on top position for many years. Samsung has beaten competitors till date in all segments say value and Volume . It looks that first time It has got strong competitor in Xiaomi Mi handsets.

Xiaomi has recently positioned itself as online brand. Earlier MI handsets was available to end users at online portals naming Amazon, Flipkart, Snapdeal in India.

Xiaomi India decided to go offline in leadership of MD  Mr. Manu Kumar Jain. Manu kumar jain is IIT Delhi and IIM C alumnus. He was also co-founder and Managing director of Online portal Jabong.

AS per IDC report , Xiaomi is now no. 2 smart phone brand in India. In AMJ (April May June) quarter Xiaomi has grabbed 17.2 % market share. It is 25 % higher than Q1 JFM ( January February and March). Q2 is topped by Samsung with 23.6% market share, followed by Xiaomi 17.2%, Vivo 12.8%, Oppo 7.9%, Lenovo+Moto 6.9%.

Xiaomi has adopted interesting policy to go offline. It has handpicked retailers who can sell Mi handsets at their outlets. Xiaomi has carefully chosen Mi preferred partner based on location and sales potential.

This is interesting policy, as all brand concentrate on WOD ( width of distribution) and in this flow dilute brand. While for Mi, there is bee line of retailers and looks as MD personally chose each and every one.

Till date Xiaomi has approved 600+ Mi partners across India. Xiaomi ensure certain brand guidelines to be followed by retailers and retailers happily do that. It should be noted that when Vivo , Oppo and Gionee are paying for branding like GSB (Glow sign board) retailers are happily changing it for Mi for Zero GSB benefit.

Samsung has been undisputed smartphone leader in India. But time is changing fast, samsung is facing biggest threat by Xiaomi in India. Here it should be pointed that Samsung has already lost leadership position in China. It is not even no.2,3 or brand there.

Samsung has learn from its mistake in China. It is taking timely corrective action in Indian Market. Under sub 20 k it was being challenged by Vivo and Oppo. However with launch of models like J7 Nxt, J7 Max and J7 Pro it has strengthen its portfolio in price range of 10-20K.

Xiaomi has gone with 600 + Mi preferred partners till date. It includes both General trade and Organized trade. In Organized trade it has chosen Purvika in south and Spice Hotspot in North India.Spice Hotspot has Xiaomi handsets in Delhi NCR and Kolkata retail outlets.

Samsung worries that if with 600 retailers it can gain 17% market share, than it has life threat from Mi. Samsung has lacs of retailers in India who sales Samsung handsets from their outlets.

It was also in News that Samsung has stopped supply for the partners who has become Mi preferred retail outlets. This show desperation of a leading brand.

Xiaomi has outnumbered all brands put together where it has allowed to be partner. Here is biggest concern for all brands and particularly for Samsung. Samsung is no. 2 brand where Xiaomi Mi handsets are being sold also Xiaomi counter share is more than 50%.

Xiaomi is launching it biggest Mi Homes in India on 19th August.It is first Mi homes in Delhi NCR. it is located in Ambience Mall Gurgaon. It will be spread in 1500 square feet area.

Xiaomi most successful model as of today is Redmi Note 4. Redmi Note 4 is also India’s No.1 selling smartphone in India for Quarter 1 and Quarter 2 of 2017.

Leave a Reply