Smartphone sales were down by 9.7% year-on-year nationwide in the last quarter of 2018, and the market is cooling down. Apple saw iPhone sales dropped by 26.7% in China and decided to cut prices of some of its models and revised its revenue predictions. Shipments of Xiaomi smartphone in China slumped by 34.9% to the fifth place compared with the same period in the previous year.
Weak offline network
Xiaomi made Redmi as an independent brand focusing on making budget phones on January 10, 2019. It also launched online release conferences for new Xiaomi 9 on Weibo for six days in a row. The CEO Lei Jun and endorser Wang Yuan revealed the selling points in every day’s trailer.
To a certain extent, the loss might properly be ascribed to its offline strategy in the past two years. Its featured high cost-effectiveness leaves little room for profit to distributors. The performance commission is not competitive and attractive enough to motivate sales staff to sell Xiaomi phones.
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