Xiaomi Looking To Turn ‘The Mobile Store’ Outlets Into Mi Home Stores
Xiaomi is looking to increase their offline presence and The Mobile Store chain is all but dead. It is a win for both.
The second-largest handset maker in India, Xiaomi and Bangalore-based retail chain Sangeetha Mobiles together, are planning to buy Essar Group’s The Mobile Store Outlets and turn them into Mi Home Stores.
Both the companies are in talks with the Essar Group, who own The Mobile Store Retail chain. Xiaomi and Sangeetha Mobiles are planning to acquire around 300-odd Mobile Store outlets, which are soon winding up operations due to financial issues.
- 1 ‘The Mobile Store’ Outlets To ‘Mi Home’ Stores
- 2 Interested In Locations, Not The Brand
- 3 Relief For Essar Group
- 4 National Presence
- 5 The Mobile Store – Blast From Past
- 6 Xiaomi’s Offline Expansion Plans
- 7 India’s Second Largest Smartphone Manufacturer
- 8 Xiaomi Ships 10 Million Handsets For Second Consecutive Month
‘The Mobile Store’ Outlets To ‘Mi Home’ Stores
To expand offline, Xiaomi can extensively use the Mobile Store outlets and their wide presence. Partnering with Sangeetha Mobiles to acquire the Mobile Store business, and converting them into exclusive ‘Mi Home’ outlets. Xiaomi will eventually take up their stake, if their single-brand retail Foreign Direct Investment (FDI) application is approved.
Interested In Locations, Not The Brand
Essar Group has failed miserably in the last few years, after trying out various models like the two-hour handset delivery. The main reason is said to be the absence of a strategic investor. Essar is simply offering their retail locations, which are located at some prime locations around the country. Xiaomi will definitely be interested in these locations, not the brand.
Relief For Essar Group
This deal between Xiaomi-Sangeetha Mobiles and Essar Group would be a distress sale for Essar. They have already served termination notices to thousands of employees and shut down most of their outlets.
For Sangeetha Mobiles, the collaboration with Xiaomi to purchase The Mobile Store outlets will provide them a national presence with a big chance for expansion outside South India. Presently, the Bengaluru-based mobile retail chain has over 400 stores across South India.
The Mobile Store – Blast From Past
At one time, The Mobile Store chain was one of India’s largest mobile retail chain, with over 1,000 stores across India. But, it soon lost out to online smartphone sales and entry of Reliance Retail. The Reliance Retail chain has evolved as the largest retailer of the consumer electronics goods and cell phones with over 2,000 stores across the country. It is followed by the Bengaluru-based Sangeetha Mobiles, with over 400 stores across South India.
Xiaomi’s Offline Expansion Plans
Xiaomi is rapidly expanding in the offline space. After partnering with Big Bazaar, the Chinese manufacturer has been selling Xiaomi devices through thousands of multi-brand stores. They have set up its exclusive ‘Mi Home’ outlets in select Indian cities. The offline sales already account for 20% of Xiaomi’s revenues. Converting The Mobile Store outlets into Mi Home Stores would scale up their offline retail presence to a large extent.
India’s Second Largest Smartphone Manufacturer
The Chinese manufacturer Xiaomi is India’s second largest smartphone manufacturer with a 22% share in the Indian smartphone market. It has closed the gap with market leader Samsung, which presently has a 23% market share. With Xiaomi’s rapid expansion in the offline space, it is slated to be India’s largest smartphone maker, with the highest share in the market.
Xiaomi Ships 10 Million Handsets For Second Consecutive Month
Xiaomi has shipped around 10 million smartphones for a second month in a row. The company recently opened more than 200 Mi Home stores in home market China, which helped Xiaomi to expand their offline sales. In India, the successful festive period credited is being credited for the sales.