A few days ago, a new report from Canalys showed the performance of the global smartphone market share in the second quarter. According to the report, Xiaomi’s market share reached 17%. Considering sales from other companies, Xiaomi is now in second place. The Chinese manufacturer only ranks second to Samsung, surpassing Apple.
Lei Jun, Xiaomi founder and head and CEO of Xiaomi Group, was interviewed by the media. According to Lei Jun, to date, no more than 30% of people buy mobile phones online. However, 70% of people prefer to buy a smartphone offline. For this reason, Xiaomi has been using offline stores since 2016. Lei Jun also believes that Xiaomi has the e-commerce efficiency to cover all offline stores. According to him, the company opens no less than 1000 offline stores every month. He also claimed that by the end of June, Xiaomi had up to 8000 offline stores.
He was talking about the Chinese smartphone market and not globally. He continued, “Currently, every county in the country has Xiaomi home coverage, and this number will continue to increase in the future. I feel that when our offline store closes completely, we have a chance to grab first place in the Chinese market share”.
Xiaomi has plans to expand its offline market
From the above statement, Xiaomi is clearly targeting the top spot in the Chinese smartphone market. The company hopes to do this with a large offline marketplace that doesn’t seem to be overlooked by many manufacturers.
It should be noted that Lei Jun also set two flags: one is to let all counties own Xiaomi homes and Xiaomi grocery stores. The second flag is to erect Xiaomi homes in 10,000 villages and towns. Lei Jun stressed that the company has a very clear plan with a firm and strong execution style. He believes that the company will soon complete the purpose of this layout, and the result will be clear for everyone to see.
According to reports, much of Xiaomi’s own growth comes from several emerging markets. Several markets in Latin America, the Middle East, and Africa played an important role in its growth. The company also has better sales in some mature markets. Second, after the outbreak, there was a shortage of supply that affected many producers. Many brands are short of supply in Latin America, Middle East Africa, and even South Asia and are unable to do mass distribution. This is an excellent growth opportunity for Chinese manufacturers.