Xiaomi reopens European stores: Growth ahead
Agencies
Parisian Alexandre Martins still remembers Chinese electronics brand Xiaomi's old stores in the French capital, where his parents and sister used to shop.
'They were at good locations, like Chatelet [a commercial area in central Paris] … I used to go scout for stuff and then buy them online,' Martins said.
The Chinese tech brand opened its first boutique in France in 2018, but had shut all of its stores in the country by 2022, opting instead to maintain a presence online and with partnered retailers and operators.
'I don't think they were making a lot of money … back then its image was not that good; there was always this sense that 'Ah it's Xiaomi, it's a Chinese brand, the quality is not good',' Martins said on Monday.
Xiaomi is now preparing for a comeback, announcing plans this month to open 500 new retail stores outside China this year, especially in 'developed markets'. It said it aims to open 10,000 stores overseas in the next five years.
The decision to close all its stores in France in 2022 'corresponded to an adjustment in Xiaomi's retail strategy, which aimed to respond to the purchasing behaviour of the French', the company said on Thursday.
Without elaborating on its specific store plan for France, Xiaomi is now taking a different tack.
'Their advertisements [in France] now look very iPhone-ish, very simple, against a white background … the image of their products is a lot better this time around,' Martins said.
Analysts said Xiaomi was one of many Chinese brands that now stand a better chance of winning over European customers thanks to advertising efforts, sports sponsorships, and an increasingly positive perception of China, especially compared to the severe deterioration in the United States' image since Donald Trump returned to the White House in January.
Xiaomi founder and CEO Lei Jun told investors earlier this month that the company, which has established 16,000 Mi Home stores in China, planned to establish 10,000 overseas in the next five years, according to a research note by JP Morgan analysts.
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