POCO, Xiaomi’s sub-brand, is preparing to make a huge impact in the Indian smartphone market. POCO is well-known for its online-first strategy, and it has relied significantly on platforms such as Flipkart since its start in 2018. However, things are set to change, as the company plans to increase its offline presence in India next year. Let us take a closer look at this strategic decision and what it means for the brand.
POCO’s Plan
In a recent interview with ET Telecom, Himanshu Tandon, POCO India’s Country Head, disclosed the company’s ambitious goals to boost sales volumes by double digits and compete with India’s top five smartphone brands.
To make this happen, POCO is expanding beyond e-commerce and into the offline retail business. The firm hopes to attract a more diversified consumer base through physical stores, allowing it to maintain its excellent growth rate.
According to rumors, POCO has already joined with Jio for offline distribution, demonstrating a significant commitment to this new strategy. While online channels account for 70% of POCO’s current sales, this initiative has the potential to considerably boost its offline market share.
Growth and Market Share
POCO has advanced significantly, rising from tenth to sixth place in India’s smartphone market in just two years. With over 110% growth, the brand has demonstrated that it is more than capable of competing with larger rivals. According to IDC’s Q3 data, POCO held a 5.8% market share and experienced a 6.5% year-over-year growth, demonstrating its robustness and popularity among Indian consumers.
Challenges and Opportunities
POCO’s desire to grow coincides with the All India Mobile Retailers Association’s (AIMRA) push for a ban on Chinese products over alleged unfair trade practices. AIMRA contends that substantial discounts on e-commerce platforms have affected local businesses and resulted in tax losses.
Despite these hurdles, POCO’s offline approach is a bold move that has the potential to broaden its sales channels while also strengthening its market position.
