Mobile Retailers on Xiaomi’s Offline Strategy, Telecom News, ET Telecom
Retailers said they are still awaiting clarification on Xiaomi’s retail and billing policy for their 20,000 Mi Preferred Partners and general retailers.
AIMRA, the representative body of mobile retailers, said Xiaomi has undervalued the brand value it has placed with its offline partners.
“The brand value in the 20,000 stores must run into the hundreds of crores, far more than what is spent online. Xiaomi has managed to acquire it by selling high hopes to preferred partners by MI instead of profitable activities, which unfortunately does not happen, ”said Navneet Pathak, National Deputy Secretary General of AIMRA in a letter.
Sunil Baby, Xiaomi’s senior director of offline sales, recently said in a letter that the company is deeply hurt by this “slanderous and slanderous campaign” carried out by the association.
Pathak responded to Baby’s letter saying that “there is a lot of angst and arrogance in your reply mail and less explanation to 20,000 partners for not billing them for new launches for weeks. and later in Peace Meals and the reason no stock was billed to the rest of the retailers nationwide.
“We don’t see or feel the so-called openness and conviction on your part to address the issues we have raised on behalf of mobile retailers nationwide, which has harmed the livelihoods of retailers over the years,” he said. he added.
Retailers have alleged that in the name of offline expansion, Xiaomi is only expanding its Mi Home stores, which get same-day inventory with online flash sales and that too at the same price.
On the flip side, the company is forcing its favorite Mi offline partners to sell the same products for Rs 500 more than the online price. Retailers called it a “deceitful act with offline customers.”
“Mi-Preferred Partners have raised this issue in several forums. Yet the Xiaomi team sold the same lame story regardless of the customers returning from offline stores and diverted to, ”Pathak said.
Retailers alleged that Xiaomi India chief Manu Kumar Jain verbally promised only “priority billing to newly appointed partners under the Mi Preferred Partner Program.”
Pathak said leading retailers have been urged to replace their store’s header panels with the Xiaomi brand to get the inventory.
“The whole agreement and conditions were one-sided. Retailers were persuaded and pressured to commit to the header brand, 50% of the in-store brand, a large counterpart, and the store manager as a mid-buddy to influence sales by Xiaomi store compared to other competing brands. The Xiaomi team did not deliver the copy of the said agreement to most of the designated partners, ”he added.
Retailers said Xiaomi is also responsible for hurting sales for retailers who cannot commit to all of the brand’s terms and conditions, and Xiaomi has blocked their billing.
They asked Xiaomi about the drastic drop in sales of its favorite Mi-partners compared to the exponential growth online.
“If the brand claims to be balanced and honest and denies our portrayal as factually incorrect, then let’s do the third party audit for both offline and online billing. Otherwise, the facts can be uncovered by the ICC investigation, ”Pathak said in the letter dated September 1.
Mobile retailers have also questioned Xiaomi’s claims of the supply shortage even when it was doing “social media celebrations” to achieve record sales.
“… on the other hand, the offline channel was completely dry on inventory. Plus, it was hurtful to learn that the Xiaomi team’s concerns were greater about not delivering enough supplies. .. There is a big difference between Aiming to provide balance of actions versus achievement; it all depends on the true intention of the brand, ”Pathak said.