China-based Xiaomi is planning to extend its pan-India offline retail network by end-2015. The company shifted from its online only strategy and has tied up with Reddington for sales through local unorganised retailers. Currently, nearly 90 per cent of its sales are through online channels.

Xiaomi started its pilot offline distribution stores in August 2015 across Kolkata, Bengaluru, Hyderabad and Chennai. It has also entered into tie-ups with organised retailers like such as The Mobile Store and Bharti Airtel. According to the company, offline sales are expected to contribute to around 25 per cent to 33 per cent of the total sales in 2016.

The company is also looking at introducing a ‘just-in-time’ distribution model for its offline sales. Under the model, the requirement for the stock will be passed on from the retailer to the main distributor. This will help reduce the channel’s working capital requirements and improve profit margins.