China’s Xiaomi Is Covering Itself With “Made in India” Posters

Must Read

Net Worth Of Jeff Bezos Is More Than Combined Net Worth of India’s Top 10 Richest People!

Jeff Bezos and the phrase 'World's Richest Person' has become synonym to each other. But after the...

Search Engine Optimization In Digital Era: Look Beyond Traffic

Search engine optimization, aka SEO, plays a vital role in today's online world, especially if it's about...

The Sudden Rise In The Demand Of Refurbished Smartphones In India!

The new normal is changing the dynamics of the Indian smartphone industry. In the last two to...

China-based, the fourth-largest smartphone maker, Xiaomi is making desperate attempts to prove itself as much Indian as any other homegrown company is. The smartphone major has found a rather unique way to guard its Indian outlets across the country against the attacks of the anti-China promoters and win over consumers sentiments.

Yes, the mighty Chinese player has started covering up its multi-brand store’s logo and signboards with “Made in India” posters. Also, the company has asked its frontline staff not to wear their usual uniforms in the stores. These deliberate steps were taken to protect its workforce and the store from anti-China sentiments and attacks that are spreading across the country like the wildfire.

All India Mobile Retailers Association (AIMRA), recently sent the notification to all Chinese smartphone makers to “remove or hide” their branding and demonstrated the threat of damage that may be caused to their stores for selling the Chinese products in India among the anti-China sentiments. Three of the senior industry executives of the body also stated that this move is made as a precautionary measure, because the brand signage on the brick and mortar stores pertains to retailer incentive, and those expected damages could be retailers liability.

Advertisements

They also pointed out that Xiaomi had already made all arrangements and covered up its brand’s logo and signage all across the major cities like Delhi-NCR, Mumbai, Chennai, Pune, Agra, Patna and some other places where anti-Chinese sentiments were rooted In.

AIMRA had also notified all the Chinese smartphone makers like Xiaomi, Oppo, Vivo, Realme, OnePlus, Lenovo-Motorola and Huawei with the letter of communication recommending them to either hide the signage or discard them for a few months until all these the anti-China sentiments to settle down. The instruction on the letter goes like this, 

“Damage to these boards should not be the retailer’s liability as the circumstances are not in our hands or our control.” 

The executives also mentioned that they didn’t receive any response from Xiaomi for the email they have sent previously. But other Chinese brands are yet to take the actions as Xiaomi has established. With this in the stand, the retailers said there had been no effect on the rising demand for Chinese products except the short supplies the brands Realme, Xiaomi, Oppo and OnePlus are facing.

Xiaomi has over 2,500 exclusive Mi Stores in India, which makes it one of the largest smartphone retail chains in India. Its offline presence is 108% bigger than Dominos, 117% bigger than Bata, 48% bigger than Cafe Coffee Day, and 44% bigger than Samsung. However, a lion’s share of the company’s sales still comes from online channels.

The recent India-China border clash has rooted the anti-China sentiments like ‘boycott Chinese products’ all across the nation. But Xiaomi is hopefully on the positive side to establish their sales portfolio to that of the pre-Covid levels by the third quarter of 2020.

Advertisements

Manu Kumar Jain, Managing Director, Xiaomi India tweeted yesterday that in less than 50 seconds, one of its smartphone models was sold out online where he indicated the growing demand for the company’s product.

He also brings up to Economic Times that,

The company has not administered any security advisory at its offices, stores or in its manufacturing units across the country. Also, it seems, they have not toughened the security even. Jain has illustrated about those people demonstrating the product outside the company’s outlets as “fringe elements”. 

He also points out that his company was more likely to be Indian when compared to other local Indian handset companies. He made this point with all the relevant data like all of Xiaomi’s smartphones, and most of the company’s smart TVs are manufactured here in India. And, on average, 65% of its components are sourced locally.

Xiaomi is a company with a total local administration and management. It claims to have created employment for 50,000 Indian people.

Manu Kumar Jain also quoted that 100% of the data of Indian users are from those who are staying in India. 

Jain states a comparison that some non-Chinese peer competitors, including a ‘US Company’, are importing all their smartphones from China and local Indian brands then relabeling them under their name and selling in India.

 As per Counterpoint Research, the Indian smartphone market comprises almost 81% of Chinese brands. The growth of Chinese smartphone manufacturers in India is primarily led by Xiaomi which accounts for nearly one-third of total smartphone shipments in India every quarter. In Q1 2020, Xiaomi shipped 10.1 million smartphones in India and maintained its dominance over arch-rival Samsung.

For the last few days Chinese companies in india are leaving no stone unturned either to lay low or win customers confidence by proving themselves as indian as any other homegrown company. While it’s too early to estimate the affect of anti-china sentiments on Chinese companies in India, the sales of smartphones in Q3 2020 would paint quite a conclusive picture to understand how difficult or easy the market is going to be for Chinese companies in in the near future.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Global 5G Chipset Market: $22.41 Billion By 2026, Driven by 5G Smartphones

As the world has started shifting from 4G to 5G era, the global 5G chipset market has...

Launch Of JioMeet Will Make Zoom To Be The 60th Chinese App To Get Banned In India?

Today as soon as the launch of JioMeet was formally announced by Mukesh Ambani, the frontman of Reliance Industries, people quickly found...

Intel Invest in Jio Platforms: A Chance For Redemption In The Smartphone Market?

If you thought Mukesh Ambani was finally going to stop the stake selling spree in Jio Platforms after RIL was recently announced...

With The Launch of JioMeet Reliance Sets Its Eyes On Video Conferencing Market!

The race to dominate the video conferencing market has just become more interesting. As we are going through the...

Facebook To Shutdown Lasso, The TikTok Competitor: A Well Calculated Move?

By now almost everyone is aware of how Facebook Inc. (NASDAQ:FB) always attempts to copy every other popular app that tries to...

Net Worth Of Jeff Bezos Is More Than Combined Net Worth of India’s Top 10 Richest People!

Jeff Bezos and the phrase 'World's Richest Person' has become synonym to each other. But after the latest jump in the net...

In-Depth: Dprime

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

TikTok Is Facing The Wrath Of People Who Love It The Most

Ever since the popular social media app TikTok entered India, it has been growing very aggressively in terms of users. Within a...

More Articles Like This