Xiaomi opens world’s largest Mi Home store in Wuhan, China
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Chinese electronics brand Xiaomi has opened its largest Mi Home store in Wuhan.
The new location, launched shortly after the firm reached its target of 100 Mi Home stores in China, features a smart home demo zone that showcases a range of its products in a home-use environment. Sales assistants are on-hand in Xiaomi’s stores to guide customers in the use of the devices on sale and to process payments without waiting in queues.
Xiaomi now targets expansion to 200 Mi Home locations in China by the end of the year and 1000 by 2020. It will also bring the number of authorised dealers to 2000 over the next three months. Following the opening of the Mi Home store in Wuhan, the company aims to extend its retail network to cover all quality business districts across the country by the end of this year.
The brand’s physical stores are seen as a move to counter those of competing brands.
Robust handset sales have recently seen Xiaomi reverse a RMB12 billion (US$1.75 billion) loss during the fourth quarter of its financial year ended June last year to a profit of RMB14.6 billion ($2.1 billion) in the same period this year.
Questions & Answers
Q.What specific features does the new Mi Home store in Wuhan offer to customers?
What specific features does the new Mi Home store in Wuhan offer to customers?
The new store includes a smart home demo zone, allowing customers to experience products in a home-use environment. Sales assistants are available to guide customers and process payments, avoiding queues.
Q.What are Xiaomi's expansion goals for its retail network in China?
What are Xiaomi's expansion goals for its retail network in China?
Xiaomi aims to expand to 200 Mi Home stores by the end of the year and 1000 by 2020. It also plans to increase authorised dealers to 2000 within the next three months.
Q.Why is Xiaomi investing in physical stores given the current retail climate?
Why is Xiaomi investing in physical stores given the current retail climate?
The company views its physical stores as a strategic move to directly compete with other brands. This expansion follows robust handset sales and a significant financial turnaround.
Q.How has Xiaomi's financial performance changed recently?
How has Xiaomi's financial performance changed recently?
Xiaomi reversed a RMB12 billion loss in the fourth quarter of its last financial year to a RMB14.6 billion profit in the same period this year, driven by strong handset sales.
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