Xiaomi’s Hong Kong sales surge after pivot, opening of city’s second showroom

In July, Xiaomi opened a Mi Home showroom in Causeway Bay, reflecting its second brick and mortar shop in the city

PUBLISHED : Monday, 23 October, 2017, 8:57pm
UPDATED : Monday, 23 October, 2017, 10:29pm

As Chinese smartphone maker Xiaomi makes a push towards offline retail in mainland China and its international markets, the company’s efforts in Hong Kong have paid off with offline sales almost doubling this year.

Offline sales jumped 91 per cent for the first three quarters of 2017 compared to the same period last year.

On Monday, Xiaomi Hong Kong operations head Janine Luo Yan said that the company has been working towards improving the customer experience both online and offline, as well as bringing the latest products released in the mainland to Hong Kong.

“Sales for our ecosystem products have grown 40 per cent in Hong Kong,” Luo said, emphasising that the market is an important one for Xiaomi.

She said that Xiaomi was working hard to bring more of its smartphones and ecosystem products to Hong Kong in a timely manner.

In July, Xiaomi opened its second Mi Home store in Causeway Bay, about two years after it opened its first offline store on Nathan Road in Mong Kok. Initially selling only smartphones and mobile accessories, both Mi Home stores now offer a range of lifestyle and smart home products from Xiaomi, including a smart body scale, rice cooker and action camera.

Xiaomi originally pursued an online-only strategy, selling its products directly to users via flash sales and its online store. However, amid declining sales and market share in 2015, the Chinese smartphone maker opened its first brick-and-mortar store in Beijing as it sought to pursue a more integrated strategy.

Xiaomi chief executive Lei Jun said earlier this year that the goal is to have 1,000 Mi Home brick-and-mortar retail outlets in China in the next three years, aiming for sales from these stores to top 70 billion yuan annually within five years.

The company also operates Mi Home stores in India and Taiwan. For its other international markets, such as Singapore, Xiaomi partners with authorised retailers to sell its products.

When Xiaomi partnered with Google to launch the Mi Android One smartphone in September, Hong Kong was among the first international markets to have access to the device, she said.

Luo also said that the Mi Mix 2, Xiaomi’s 6-inch flagship bezel-less smartphone, will be available in Hong Kong from Tuesday, again making Hong Kong users among the first outside mainland China to be able to purchase the device.

The Mi Mix 2 comes with 6GB RAM, 128 GB storage and is powered by the Qualcomm Snapdragon 835 processor. It also boasts a 4500 mAh battery and will cost HK$4,299.

Xiaomi also said that its smart Mi electric water kettle (HK$249) and smart aluminium suitcase (HK$1,199), both of which can be controlled by Xiaomi’s smartphone app, will go on sale on Tuesday.