Xiaomi to launch US online store but will not sell phones for now
Chinese smartphone maker Xiaomi’s expansion out of Asia will begin in the US with an online store that will initially sell accessories rather than handsets.
The online storefront will also open in other unspecified markets in the coming months, featuring products such as health bands, power charger and headphones.
The limited offering reflects the cautious way Xiaomi plans to enter a market it has long eyed as a key battleground in its growth strategy. For a company whose distribution of its of low-cost, premium-positioned phones is so carefully entwined with its marketing, it needs to resolve any logistical issues if it is to compete with the likes of Samsung and Apple abroad.
An online store would help Xiaomi build buzz among the tech sazzy in the West, who increasingly refer to the business as the “Apple of China”. E-commerce is an approach employed by rival Chinese manufacturers Huawei and Alcatel, which have both set up online stores as way to build awareness through direct relationships with shoppers.
Hugo Barra, vice president of international markets at Xiaomi and former Google executive, said: “[We] can bring these products to market because they are simpler to take to market.
Since launching in 2010, Xiaomi has become the world’s third largest smarpthone maker selling 61 million handsets last year.
“We intend to launch it here in the US, and perhaps a few other markets and see how it goes. Hopefully it will be the beginning of really having America experience the Xiaomi brand and quality and craftsmanship of our products,” added Barra.
The business is the world’s most valuable start-up with a valuation of more than $45bn. However, it is not yet a household name in the West and has to overcome packaging, manufacturing, regulatory and language hurdles if it is to challenge the might of Apple and Samsung worldwide.