With lockdowns being lifted partially, how does Xiaomi<\/a> expect the sales to rebound?<\/strong>
With the lockdowns being lifted partially, we continue to remain cautiously optimistic. With all our learnings from the last 12 months, we believe we are better prepared to handle the situation.
As we anticipate the market to bounce back in Q3, we have been working towards expanding our local manufacturing capabilities to meet the rising demand, and have recently onboarded two new manufacturing partners – DBG and BYD. Having said that, keeping everyone’s safety in mind, we will continue to follow all the safety protocols\/SOPs at our factories like conducting routine checkups, following social distancing norms, etc.
The Mi11 ultra shipments are delayed. Is it because of supply chain disruption? Has it impacted other phones too?<\/strong>
Due to circumstances beyond our control, there has been a delay in the shipment of Mi11 Ultra. The team is working hard to make it available for our consumers as soon as possible.
How are you ensuring business continuity and production at Xiaomi factories?
<\/strong>
Over the last one year, we have constantly worked towards keeping our partners and customers safe while fostering business continuity. To ensure safety of our employees and partners, we have been conducting routine check-ups, and following all safety SOPs. In line with the government guidelines, we have been operating in three shifts across our manufacturing plants to optimize output. In addition to this, our partners are also very well equipped to handle the situation, thereby ensuring safety and business continuity.
Is Xiaomi continuing with offline expansion or focusing more on online?<\/strong>
We give an equal emphasis to both online and offline channels. We have been maintaining an optimum balance across offline and online channels in terms of sales contribution as well.
Expanding our offline presence, a few months back we announced a new initiative, Grow With Mi (GWM). With this initiative, we plan to double the number of offline retail touchpoints as well as the number of exclusive retail stores in India. Currently Mi India has over 15,000 retail touchpoints, out of which over 3000 are Mi Stores that are exclusive retail stores for our Mi and Redmi products. These are spread across all states, districts and towns in India.
Other brands are focusing on 5G and expect it to bring it at around Rs 10,000 price range. What’s Xiaomi’s 5G strategy?<\/strong>
Since last year, we have been launching 5G smartphones<\/a> at different price ranges. In India, the smartphone industry has been transforming rapidly and hence the 5G technology is of much relevance to serve the growing appetite of the country. Thus, we are planning to launch more products in these segments, for consumers who tend to use smartphones from these segments for 12 months or more.
However, in mid-range and entry level segments, smartphone specs get outdated at a faster pace. Hence, packing in advanced technologies such as 5G might not serve the purpose at the moment. Having said that, we are constantly evaluating feedback from our customers. We will tap into niche product categories and bring in technologies requested by our consumers.
How is your fintech business performing?<\/strong>
We have always believed in making technology accessible to all and focussing on innovation that eases our users’ lives. We came up with Mi Credit two years back, a new-age Fin-Tech platform that aims to foster financial inclusion by leveraging technology to support borrowers with hassle-free loans. In order to offer affordable EMIs to our users, we have been working with multiple partners, primarily NBFCs or Fintechs such as Aditya Birla Finance Limited, Money View, EarlySalary, Home Credit, and CreditVidya.
We want to make sure that all creditworthy customers get quick, reliable and affordable loan options. Therefore, we will be looking for more partnerships with trustworthy platforms to provide our consumers with more options that can offer them secured loans with low interest and hassle-free documentation.
Do you plan to enter new product categories?
<\/strong>
We are present in product categories such as smart home (Smart TVs, Smart Lights), home care (Robot Vacuum Cleaner), e-Learning (laptops), personal care (KN95 masks & automatic soap dispenser), audio (smart speakers & earphones), and health and fitness (smart bands and smartwatches). Going forward, we will continue to tap into niche product categories by using market intelligence, community conversations, and social listening.
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