Xiaomi announced its plans to launch 20,000 new retail stores throughout mainland China over three years.
The Beijing-based company sets its target to reach the number one smartphone seller position by 2024. Xiaomi intends to grow the business by expanding its retail network across rural China, accounting for around 70 percent of the local smartphone market.
Lu Weibing, the Senior VP of Xiaomi and the president of operations in China, announced the news on Thursday on China’s microblogging platform Weibo. However, there was no mention of investment details.
The company that initially became known for its Android-based smartphones presently has 10,000 mortar-and-bricks retail stores running across China. By building 20,000 more offline stores, Xiaomi aims to grow the business in the “sinking markets” of its “base camp”, as Lu puts it.
In his post, Lu said that Xiaomi’s goal is not to beat any specific smartphone brand but surpass all brands, including Apple, to take the number one position.
According to Counterpoint Research, the biggest competitor of Xiaomi will be Honor, the former Huawei budget phone. The report suggests that Honor and Xiaomi have better online sales than their other popular Chinese Android smartphone competitor brands.
To become the world’s number one smartphone brand in three years, Xiaomi has quite a few obstacles to overcome. To name a few, the brand needs to deal with worldwide semiconductor shortage and fight the harmful exposure it has in other countries.
In September, the Lithuanian government singled out Xiaomi devices due to their censorship abilities. As such, the citizens were encouraged to discard smartphones. Xiaomi, on the other hand, denied the claim. It was a blow to the firm’s business expansion in the European smartphone market.