The world’s third-largest smartphone maker is once again demonstrating the potential of its unique business model, with the unprecedented expansion of its brick-and-mortar stores.
By Summa Magazine
After a historic 2020, Xiaomi kicks off this new year with the simultaneous opening of 1003 new stores in China, thus setting an unprecedented record in its successful business model.
This grand opening took place in 270 cities in 30 provinces of the Asian country, where now thousands of consumers and followers -My Fans- will have the opportunity to be closer to the brand. It should be remembered that just a month ago, Xiaomi opened its 1,000th store in the Chinese city of Chengdu, fulfilling the promise of Lei Jun, Founder and CEO of Xiaomi, who in 2017 announced the company’s plans to open 1,000 new stores in the next three years.
For his part, in December 2020, Lu Weibing, Vice President of Xiaomi, assured that one of the company’s objectives in 2021 is that in “each city and county in China there will be at least one Mi Store, so that each user can have an official store nearby ». In this sense, Lu Webing assured that opening 1,000 stores in a single day “is just a small step to fulfill that promise.” He also mentioned that Xiaomi could have more than ten thousand official stores in China in the near future.
The first Mi Store opened in China in 2016, causing a sensation among local consumers. In fact, according to press reports, the sales per square meter of Xiaomi’s official stores at the time could reach 250 thousand RMB (about 38.7 thousand USD), which was up to 20 times more than the sales revenue generated by all other traditional retail stores.
New retail: one of the three pillars of Xiaomi’s unique business model
In 2016, Lei Jun explained the definition of the company’s new retail: “by integrating interactive operations online and offline, we can transfer the advantages of electronic commerce to our physical stores, thus improving the shopping experience and logistics efficiency, to offer high quality products and low prices to consumers ”.
The above shows that the birth of the Mi Stores was not accidental; on the contrary, Xiaomi has been exploring the possible methods of a new sales model, even before the first Mi Store was inaugurated.
The new retail, along with intelligent hardware and Internet service are the three synergistic pillars that are part of Xiaomi’s unique and successful ‘triathlon business model’.
2020: the year that fueled Xiaomi’s global growth
At the beginning of 2020, there were only hundreds of Mi Stores in China. So when Lu Weibing said that Xiaomi would open at least one store in every city in the country, many people could hardly believe it. However, after this grand opening of 1003 new Mi Stores, everyone can see the potential of the company and its growth plans.
Indeed, some industry insiders said that the promise made by Lu Weibing showed Xiaomi’s confidence in its own business model after years of exploration.
Likewise, at the beginning of last year, Xiaomi announced its debut in the segment of high-end smartphones globally, with the launch of Mi 10, which became the best-selling premium smartphone in China during the first ten months. of the year. According to Xiaomi’s financial report, in the first nine months of 2020, the company sold more than eight million high-end smartphones worldwide.
The success of Xiaomi smartphones is the result of the high investment made by the company in R&D. Now Xiaomi is the global technology leader in some key smartphone features, such as the camera and fast charging, and will soon be on display.
Xiaomi has just launched its latest and so far most advanced flagship phone in China: the Mi 11. After the first sale of the Mi 11 started in the Chinese market, the sales volume exceeded 1.5 billion RMB (approx. 232 million dollars) in just five minutes.
Xiaomi Colombia has confirmed that Mi 11 will be available soon in the country, thus fulfilling the promise that Colombian consumers will no longer have to wait long to enjoy the latest brand news.