The famous consumer electronics company, Xiaomi Corp confirms that among its top five global sales channels, three are from India and they together accounted for 32% of its global revenue in the year 2017. This statement was made by the company when it filed documents for an initial public offering in Hong Kong. The first position is held by an e-commerce company from China.
Whereas on the second position, stands one of the largest e-commerce company based in India, that is Flipkart. The third largest trade partner for Xiaomi globally is a Chinese consumer electronics company. They are followed by TVS electronics, which is a consumer electronics distributor based in India. The last one on the list, that is the fifth largest global trade partner for Xiaomi, is Amazon India. Amazon India is the Indian operation unit of the famous international e-commerce company, Amazon.
As reported by Xiaomi in the fillings, they claim that they are at the top when it comes to smartphone unit shipments online in India and mainland China. This was the report for the fourth quarter of 2017. They further explained that they cooperate with some of the third party e-commerce sites which include Flipkart, Tmall, Amazon, TVS Electronics, and JD.com. This is done to leverage the local sales and marketing expertise of these platforms and their payment infrastructure along with their logistics portfolio.
They aim to leverage their leadership in India to expand their user base and monetize it. Xiaomi has set up a product and R&D team in the country to customize products according to the conditions in India which include lowering the device’s temperature as well as for chargers which would enable the devices to handle the fluctuations in power supply. They occupy 57% of the Smartphone market share for the third quarter of 2017 which makes it the largest online smartphone brand in India. A third party firm named iResearch provided the details about the gross merchandise value of all the online retail platforms in India and based on that report, Xiaomi states that Mi.com was the third largest online retail platform in the country for that year.
As mentioned in global media reports, Xiaomi aims to raise 10 billion dollars which will be at a valuation of $80-100 billion. As reported by the company in the fillings, their revenue had increased to 18 billion dollars to 68% in 2017. 28% of Xiaomi’s sales are from its markets abroad which also includes its Indian market. After China, the second largest market for Xiaomi is India and is also one of the main contributors to the growth of the company’s global revenue. Xiaomi’s entry in the Indian market has seen an increase year by year and its operations turned profitable within the first three years of its entry in the county. In 2016-17, the revenue of Xiaomi India was 1.25 billion dollars, as reported by the latest regulatory filings in India. This is almost seven times of the revenue earned by the company in the preceding year.