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Xiaomi, the Chinese Tech Giant, Increases Focus on Indian Retail Stores in Faceoff with Samsung

Chinese smartphone maker Xiaomi is shifting its focus to boost offline sales in India after relying heavily on e-commerce platforms for years. Despite the surge in online sales through Amazon and Flipkart, Xiaomi's India president, Muralikrishnan B., believes that the brick-and-mortar segment holds more significant potential for growth. Currently, only 34% of Xiaomi's sales in India come from retail stores, while Samsung garners 57% of its sales from stores.

To regain its leadership position in the Indian market, Xiaomi plans to expand its network of physical stores beyond the existing 18,000 outlets. The company also aims to collaborate with phone vendors to offer additional products like Xiaomi TVs and security cameras in less competitive segments. Xiaomi has faced marketing challenges, with some partner stores displaying rival brands more prominently, leading the company to address this issue.

Furthermore, Xiaomi aims to hire more store promoters to attract and sell to potential buyers within retail outlets. The move comes after losing its leadership position to Samsung, which has a larger portfolio of premium phones that are currently in demand in the Indian market. However, Xiaomi faces an additional challenge in India due to a $673 million freeze on its bank assets by a federal agency, alleging illegal remittances to foreign entities in the name of royalties. Xiaomi denies any wrongdoing in this matter.

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