Evolution is a process of constant branching and expansion – Stephen Jay Gould
The human race is in a constant search for growth and development. The technical revolution and the Eco space of mobile technology is providing a lot of avenues for companies to cross borders and enhance their reach across different markets. Catering to this urge for expansion, Xiaomi, the world’s third largest smartphone manufacturer is planning to launch an integrated eCommerce business model for its phones and other devices to firm their feet in the Indian markets. They plan to launch an e-Commerce portal that will offer not just phones, but a plethora of other devices too. Speaking about the plans, Head of Xiaomi India, Manu Kumar Jain explained that they looking forward to invest in few startup tech companies to develop an integrated cross channel e-Commerce system. The investments will be used to set up e-Commerce business including warehouse and logistics. However, Xiaomi has not revealed the amount of investment in monetary terms. Xiaomi has been deriving the major chunk of its sales through its portal and channel partners Flipkart, Amazon and Snapdeal.
Xiaomi is also looking forward to invest in the R&D center in Bengaluru. They are looking to set up a manufacturing facility and chart out a plan to expand exclusive sales and service network. The Bengaluru center currently employs only four professionals. However, this number is poised to reach more than a hundred by the end of this year. The new recruits will exclusively focus on design new mobile technology features for the Indian consumers. The top priority of the company is to make Xiaomi, a household name across multiple categories and products. Xiaomi, which had raised $1.1 billion in December 2014, valuing the company at $45 billion, has already started selling non-phone products such as headphones, power banks, Wi-Fi routers and fitness trackers in the US and European markets since May this year. The company’s top angel investors have already invested in more than 20 startups in China. They are looking to continue the same process in India too. Xiaomi’s founder Lei Jun had in February this year secured $160 million for his China-focused venture capital fund Shunwei China Internet Fund to invest in more Chinese startups. Founded in 2011, the Shunwei China Internet Fund currently has over $900-million assets under management. This news will bring synergy to its operations & would be one of the biggest developments to look forward to in the coming months.