$\"\"$ Chinese manufacturer Xiaomi<\/a> is adding a clause to its franchise agreement for exclusive Mi Home stores in India that it can buy out the ownership of these outlets, preparing the ground for retail foreign direct investment (FDI), according to executives aware of the matter.
\n
\nHowever, FDI may take some time since the government has informed the country’s largest smartphone maker to locally produce all its major products before setting up company-owned stores, the executives said.
\n
\nXiaomi manufactures its smartphones and power banks in the country and has indicated it will also start local television production. The Chinese firm is adding the new clause to all the agreements it is entering now for Mi Home stores and may alter the franchisee agreement of the existing stores too, said two senior trade partners of the brand.
\n
\nThe company has 37 franchisee-owned Mi Home stores in the country at present and intends to increase the number to 100 by the year-end by opening new outlets every week. The government has allowed 100% FDI in single brand retail via automatic route and provides five-year holiday in 30% local sourcing.
\n
\n“Xiaomi is keeping all options open for its company-owned stores in the country and hence, entering the ownership clause,” said a senior executive, who did not wish to be identified. “Retail FDI is going to be a major strategy for Xiaomi since it wants to drive offline sales from these stores the way it has driven in China.
\n
\nThe Centre has told the company to expand local manufacturing under the ‘Make in India’ initiative before it opens its own stores, and the company is working towards that.”
\n
\nQueries emailed by ET to Xiaomi India did not elicit any response till late evening on Tuesday.
\n
\nXiaomi, last month, brought over 50 global smartphone component makers to set up base in India which it estimates may entail $2.5 billion of investment and create 50,000 jobs if it is successful. It has plans to set up 45-50 Mi Home stores each in all the major cities such as Mumbai, New Delhi and Bengaluru. Xiaomi has partnered with leading regional retail chains for setting up these exclusive stores.
\n
\nIndustry executives said Xiaomi also recently reduced retail and distribution margin by 1% whereas the margin for multi-brand retailer is now 4-5%, for distributors it’s 2-3% and for Mi Home stores it is 2-3%. “Once the company-owned stores come up, they will be able to save the 6-8% trade margin which will boost profitability,” said another executive.
\n
\nXiaomi wants to double offline sales contribution to overall sales from 20% to 40% by next year and is also expanding its preferred partner multi-brand store network. The company has more than 2,500 ‘Mi Preferred Partner’ outlets.
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小米变更协议条款让它买Mi家商店在印度

小米制造智能手机和实力在中国银行也已表示将开始当地电视台生产。

Writankar穆克吉,
等局

更新2018年5月16日上午09:00坚持

中国制造商小米是独家特许经营协议中增加一项条款,Mi家商店在印度,它可以买到这些媒体的所有权,准备为零售外国直接投资(FDI),根据高管意识到这件事。

然而,外国直接投资可能需要一些时间因为政府已经通知中国最大的智能手机生产商在本地生产其所有主要产品设立的公司门店之前,高管表示。

小米制造智能手机和实力在中国银行也已表示将开始当地电视台生产。中国公司增加新条款的协议现在进入Mi家商店和可能改变现有门店的总经销商协议,表示两个品牌的高级贸易伙伴。

公司拥有37 franchisee-owned Mi家商店在中国目前并打算增加到100年底每周开新网点。政府已经允许100%的外国直接投资单一品牌零售通过自动路线,并提供五年假期在30%本地采购。

“小米是保持公司门店的所有选择,因此,进入所有权条款,”一位高管说,不愿具名。“零售FDI是小米的主要策略,因为它想开车从这些商店的方式推动线下销售在中国。

中心已告知该公司扩大当地制造业在印度的倡议下之前打开自己的商店,和公司正在朝着这个。”

查询邮件,等小米印度没有引起任何反应,直到周二晚上。

小米,上个月,50岁以上的全球智能手机组件制造商在印度设立基地,估计可能需要25亿美元的投资和创造50000个工作岗位,如果它是成功的。它还计划成立45 - 50米家商店在所有主要城市,如孟买,新德里和班加罗尔。小米与主要合作区域零售连锁店建立这些独家商店。

业内高管表示小米最近还零售和分销利润减少了1%,而利润的多品牌零售商现在4 - 5%,经销商是2 - 3%和Mi家商店是2 - 3%。“公司门店出现后,他们将能够节省6 - 8%的交易保证金,提高盈利能力,”另一位高管表示。

小米想双线下销售贡献整体销售从20%到40%到明年,也是扩大首选合作伙伴多品牌商店网络。该公司拥有超过2500 Mi首选合作伙伴渠道。