Xiaomi to develop e-commerce business model

Hyderabad, (IANS) Xiaomi, the world’s third-largest smartphone maker, is developing a full-fledged e-commerce business model for its phones and other devices which it plans to introduce soon in the Indian market.

Xiaomi India head Manu Kumar Jain told reporters here on Friday that they are looking to invest in few startup technology companies to develop an eco-system.

He said investment would be made in setting up e-commerce business including warehouse and logistics. He, however, did not disclose the quantum of investment.

Currently the major portion of the Chinese smartphone maker’s sales come through its portal (me.com) and channel partners Flipkart, Amazon and Snapdeal.

Xiaomi will also be investing in expanding research and development centre in Bengaluru, setting up a manufacturing facility and expanding exclusive sales and service network.

The R&D centre in Bengaluru currently employs only four professionals but it will have a 100-member team by the end of this year. The team will design new mobile technology features for Indian consumers.

Jain said the company was in talks with various state governments for setting up its manufacturing facility. It plans to make the phones through a contractual manufacturer.

Xiaomi has sold over a million smartphones in the first four months of its entry into the Indian market in July 2014, making it the fifth-largest player in the domestic market with a share of four percent.

The five-year-old company, which rolled out its first smartphone in August 2011, sold 61.1 million units globally last year, as against 18.7 million units in 2013.

The company is also looking at introducing non-phone products like smart Internet-connected devices in the Indian market. It plans to launch Xiaomi Mi Box, a tiny box that turns an ordinary TV into a smart TV, by the end of current calendar year. Xiaomi smart TV will be available next year.

Jain said Xiaomi was also aggressively looking at parking investments in Indian startups, especially in the areas of Internet technology and connected devices.

One of the top angel investors in China, it has already invested in over 20 startups in the home country.

Xiaomi’s founder Lei Jun had in February this year secured $160 million for his China-focused venture capital fund Shunwei China Internet Fund to invest in more Chinese startups. Founded in 2011, the Shunwei China Internet Fund currently has over $900-million assets under management.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here