Chinese smartphone maker Xiaomi is changing its Internet sales model to boost growth in China and fend off competition from fast-rising rivals such as Huawei. Chief Executive Lei Jun said last week that the company would open as many as 300 retail outlets throughout China, as it explores retail channels. Although Lei didn’t reveal more details, the figure itself surprised many industry watchers because Xiaomi used to rely entirely on the online flash sales of bargain Android smartphones. The strategy, which helped the six-year-old startup became a sensation in China, no longer works well as competitors followed with similar business models and consumers opt for high-end products. It shipped more than 70 million smartphones last year, missing its own target of 80-100 million. Its China market share grew 14% to 14.9%, while Huawei’s share grew 52% to 14.3%. Apple AAPL +0.13% Inc. also had 14.3% of the market, according to consultancy Counterpoint Research. A
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