Xiaomi sets sights on growing e-commerce operations
Smartphone brand eyes growth in e-commerce operations as it invests in US wearables start-up
Chinese technology start-up Xiaomi is looking to expand its direct online retail operations after posting a record 24-hour sale of 1.35 million smartphones on November 11, the mainland online shopping festival known as "Singles Day".
"By the end of this year, we could already be the No 3 e-commerce player [on the mainland]," Xiaomi co-founder and president Lin Bin said yesterday at a conference in Hong Kong.
Lin said Xiaomi sold thousands more smartphones on that day when the company opened its own shopping website to accommodate consumers who could not enter the crowded Tmall portal and buy its products.
He pointed out that Beijing-based Xiaomi "fully embraced the internet" and that it was more than hardware products. The firm also sells its own media tablets, internet-linked "smart" television line, accessories and fitness bands as part of its entry into smart wearable devices. In addition, it offers mobile applications, games and other "cloud" services.
Ricky Lai, an analyst at Guotai Junan International, said Xiaomi faced stiff competition among independent direct online retailers that sell their own product inventory. Tmall, by comparison, serves as an online portal on which various brands, like Xiaomi, sell their goods.