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!