Is this a precursor for things to come?
When Xiaomi first started doing business in the Philippines, the Chinese company was wholeheartedly against opening up physical stores in the country. Hugo Barra, who was still then VP of Global for the Chinese company, explained to us that their focus was on online sales, and that they were an e-commerce company first and foremost. Well, that turned out to be a wrong decision for them in this country, as low online sales penetration and no physical locations to sample their wares meant that the company’s sales tanked compared to their competitors.
After the rise of their competitors in China who expanded their physical presence through brick and mortar stores, Xiaomi has learned from their mistakes. The company has started opening stores in China and India, and now apparently is also expanding their retail operations in nearby Asian countries like Malaysia where they’ve opened three official physical Mi stores to serve the populace.
If Xiaomi ever does decide to return to the Philippines, the company is on the right track. While word of mouth about their products have been favorable, nothing beats actually having a physical store for people to touch and try their products. Maybe they can draw on their experiences in Malaysia to make a better battle plan for the Philippine market when they return? One can hope.
