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Xiaomi opens its first official store in Russia

In Russia opens first mono-brand store of Xiaomi. Manufacturer of electronics, which the media called “Chinese Apple”, is known for direct online sales, but in Russia for successful development of sales needed retail.

Mono-brand store Xiaomi will be launched in Moscow in shopping centre “Kaleidoscope”, report “Vedomosti” with reference to the representative of “Smart orange”. According to the interlocutor of the edition, the planned opening and other salons Xiaomi. How many stores and in what time frame will be open, not reported. The store area will be about 30 square meters, it will be sold as smartphones and other gadgets manufacturer.

A person familiar with the managers of RDC Group, claims that by the summer of 2018, “Smart orange” plans to open approximately 20 stores Xiaomi. Flagship boutique will be located in Moscow, and the smaller shops in the regions. The budget of the project, he estimates a little more than $2 million Opening mono-brand store costs at least 3 million rubles., says an employee of one of the retailers.

In the fall of 2014, the Xiaomi Mi4 smartphone in Russia started trading Chinese online store In June 2016, Xiaomi smartphones appeared in retail “Coherent” and “Euroset”. Now Xiaomi is less than 1% of the Russian smartphone market in units, estimates a leading analyst of Mobile Research Group Eldar Murtazin. In August, Xiaomi’s share in the Russian market of phones has increased by 0.4% in units and 0.8% in the money, considered the representative of MTS Dmitry Solodovnikov. According to Telecom Daily, in the first half of 2016, were sold 11.3 million phones.

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Created in 2010, the company Xiaomi in 2015 took 5th place for shipments of smartphones in the global market, according to the Gartner report. She has put on the market to 65.6 million smartphones and took 4.6% of this market. 5-e a place from Xiaomi and at the end of II quarter 2016 the company has supplied the world market with just over 15.5 million (4.5 percent). Leading with 22.3% of market Samsung – it shipped in the second quarter to 76.7 million more vehicles.

The business model of Xiaomi initially was to sell the machines at cost on flash sales (Internet sales, limited time and size of party), and to earn on mobile apps. But in Russia, where in contrast to China, for example, freely use Google apps, this model is obviously not working. Buyers prefer to pay upon receipt of the phone, and not to pay in advance. Finally, the specificity of Russia is that buyers prefer to take the machines of new brands in the physical retail, but not online, so the development of retail channel sales for new brands can not be avoided.

Mono-brand store is intended primarily to serve as a window manufacturer: there there is its flagship, advanced lineup. Experience shows that sales in the original multi-brand stores than in multi-brand.

Mono-brand store is intended to strengthen the position of the brand and, of course, contributes to his promotion, gave to “Vedomosti”, the General Director of Inventive Retail Group (in it, in particular, is a network of single-brand flagship stores, Samsung and Apple sells electronics salons re:Store) Tikhon Smykov. So in a mono-brand store sales were higher, it is necessary that the brand was strong: Xiaomi in Russia today, with all due respect, is not, he says. In the case of Xiaomi General stores is an expensive investment for a presence on the Russian market, which can pay off only in the very long term, concludes Smykov.

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