Xiaomi is to continue its overseas expansion into Africa as it seeks to offset its slowing home Chinese market where it faces increased competitions from companies such as Apple and Huawei, with the latter believed to have recently overtaken Xiaomi at the top of the Chinese market.
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A large part of Xiaomi’s success is down to the company’s online-based direct-to-consumer sales channels, which cuts out distributor and retail partners costs and ensures devices are available at the lowest price as possible. However, in Africa, the company will be passing a range of functions over to a distributor, which suggests that Xiaomi is struggling to replicate its sales model in overseas markets.
The company said today that it has entered a distribution partnership with Mobile in Africa Group to sell the Redmi 2 and Mi 4 smartphones in South Africa, Kenya and Nigeria, beginning later this month. Whereas it relies on the online model at home, Xiaomi will pass on the importation, logistics, marketing and support for Xiaomi devices to MIA Group and the handsets are expected to be sold through operator partners, websites and retailers throughout the three countries.