Xiaomi Future India Plans Likely to Unnerve Rivals

China’s phone manufacturer Xiaomi is all set to strengthen its stronghold in the massive mobile market with expansion into making phones in India and setting up servers within the country to ward off criticism that its database in Beijing is giving security and privacy conerns.

India is Xiaomi’s second biggest market after china and the phone maker has already swept the market with its Tuesday flash sale saga that sells 40,000 to 100,000 units in seconds of opening the online sale on Flipkart. Today’s flash sale is likely to sell Redmi 1S phones, perhaps for the last time at 2 PM on Flipkart.

Now the company has not only unveiled its latest phablets Redmi Note and Redmi Note 4G in the budget range giving tough fight to major rivals like Apple and Samsung in India. One of the worst affected Indian manufacturer was Micromax, which was top seller in the budget phone segment is already manufacturing its devices in India since April and soon Xiaomi too will follow the lead.

Xiaomi has also announced its decision to sell the latest Redmi Note and Note 4G devices via 100 Airtel stores across the country, heralding what is called bricks and mortar selling points in a traditional way. The Airtel retail stores will sell the units to those who pre-book the devices in top six cities Delhi, Mumbai, Bangalore, Kolkata, Hyderabad and Chennai.

“We are beginning to explore opportunities for manufacturing in India,” Manu Jain, operations head for Xiaomi in India, told TOI. “India is a big market and we would like to be close to our customers.”

Currently, Xiaomi is manufacturing its phones in China and sells them in India. So far, it was able to sell about one million phones in India exclusively through online, that too on Flipkart. Never did the company look for retail stores owing to its strategy of pre-registration and supply less than the demand in India.

Xiaomi India CEO Madhu Jain, who moved recently from Jabong, has already put in his experience in online sales for Xiaomi. While the exact plans are not revealed by the company, it is rumoured that the empty manufacturing units of Nokia in chennai may serve the purpose for Xiaomi.

Xiaomi has tie-up with Foxconn in China to make its Redmi series of handsets already and in India too it may explore the possibility of a partner or will enter into manufacturing the devices in its own assembly units, Jain told the Times of India in an interview recently.

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