Xiaomi to set up e-commerce business
Hyderabad: Chinese smartphone maker Xiaomi is developing a full-fledged e-commerce business model for its phones and other devices, a top company executive has said.
Xiaomi India Head Manu Kumar Jain said the mobile phone maker is actively considering investing in a few start-up technology companies to develop the ecosystem.
A major chunk of Xiaomi sales comes through its channel partners such as Flipkart, Amazon and Snapdeal, besides its own portal – mi.com.
“The investment will go into setting up our own e-commerce business (including setting up of) warehouse and logistics. We also enable sales through mi.com, which is our own e-commerce platform. We have not done any marketing for that (to promote the site),” Jain told reporters at a media interaction here.
He said the company is currently getting a few thousand orders a day, adding that they will also be investing in setting up a research and development centre in Bengaluru, a manufacturing facility and expanding its exclusive sales and service network.
Jain, however, did not disclose the budget that will go into the expansion.
Asked about the proposed manufacturing facility, he said it’s in talks with various state governments for setting up the plant.
Jain said the company does not intend to manufacture the phones directly, but through a contractual manufacturer.
To a specific poser, he said Xiaomi is currently talking to a few start-ups to invest in the company.
“We are actively talking to few other tech companies. They are start-ups and none of them are like the new ones who are looking for angel’s money. They are established. They have raised one or two rounds of funding and are generating revenues,” Jain explained.
According to Jain, Xiaomi sold over a million smartphones in the first four months of its entry into the Indian market in July 2014, making it the fifth-largest player in the domestic market with a share of four per cent.
The five-year-old company, which rolled out its first smartphone in August 2011, sold 61.1 million units globally last year as against 18.7 million units in 2013, he claimed.