Xiaomi’s Fall In China

Xiaomi’s Fall In China

Xiaomi sold over 61 million phones in 2014, beating Samsung and Apple to become the biggest smartphone vendor in China.

But, in Q1of 2016, Xiaomi is behind 5 companies: Apple, Samsung, Huawei, Oppo and Vivo. Why?

Well, one of the reasons being its distribution model. While Xiaomi was focusing on selling online, its competitors were doing the opposite: expanding their retail footprint through stores and distributors. Online distribution business model may be a good idea for a foreign market (e.g. Xiaomi did that in India), but it is not a good idea for your home market where you would do better to build relationships with dealers and distributors!