The presence of Xiaomi all over the world is now evident, but it is particularly so in a country likeIndia. The reasons are many but only two are the most important: the low cost of living and the very high rate of "useful brains" to technology, significantly higher than the average of other countries. Think of it as the before GDA (Game Developer Academy) by POCO was born right in India and how, just a short time ago, it was precisely here that we opened up 500 store offline simultaneously. But it's not all gold that glitters, since just last week the Indian government has passed a law which will come into force from January 2019, which prohibits the sale through online platforms to a certain extent, like Amazon or Flipkart to name two of the biggest in India. Xiaomi but it was not with hands in hand and answered by opening a huge one Mi Home in Ahmedabad, the first in this city.
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Xiaomi responds to the Indian government by opening a huge Mi Home
Obviously, because of this provision that has seen already huge portals like those that we have told you, the situation has resulted in a tightening of the policy of foreign direct investment. "Thank you" to this, on the other hand, Samsung could recover its previous position as the number one smartphone manufacturer of this country because in recent times it has lost a lot of ground, reluctantly yielding the primacy to Xiaomi. An employee of the market research company Counterpoint Technology, Neil Shah, stated precisely: "This could be an opportunity for Samsung since almost 70% of sales of Xiaomi smartphones come from online channels"
This law was proposed and subsequently approved after i Local dealers and small traders have complained about how the big Amazon and Flipkart platforms they are emptying the pockets of small shops proposing shocking discounts. How to blame them: this is a problem that has existed since e-commerce has become cheaper and more direct for consumers. What could be more convenient than buying online at home?
What exactly the Indian government has done is prohibit such e-commerce platforms from making exclusive offers for products. Furthermore, it is only permitted that a single seller can sell a maximum of 25% of his inventory on this e-commerce platform.
With this new measure lChinese company will have to open more authorized stores in order to maintain this privileged position in the Indian market and also to avoid sanctions on the part of the government. The analysts are not exactly optimists about this move since the economy of companies in India as Xiaomi (but also One Plus and Oppo to name others) they are based on online stores. That said, however, Xiaomi did not get scared and even to do it on the 29 last December opened the first Mi Home in Ahmedabad, or one We Store really big (more than 1000mq)!
Manu Kumar Jain, managing director of Xiaomi India he also announced that throughout the 2019 Xiaomi intends to open 100 of these Mi Home throughout India. In short, it seems a real failure to the recent law implemented by the government, as if to say "Look, we do not have any problems selling our products, even if we take away our online stores".
In short, Xiaomi is serious and still shows how much is attached to the market of countries like India. We are convinced that the same applies to many European countries such as Italy and Spain, it is no coincidence that more and more Mi Stores are emerging. What do you think of this law and of this move with which Xiaomi replied? It seems done on purpose, right?