they tore Xiaoping off the requirements of Spain’s large chain stores, which are asking for more margins to sell their phones.
China’s multinational telephone company has some complicated moments in Spain with supermarkets complaining about the small margin left by their phones.
The sale of a 200-euro phone from Xiaoping is for Media Market, Anacin,
Worden, Phone House, Alamo, Carefree or El Cote Angles, which is less
than €20 and is not enough to cover operating costs. The growing demand
from supermarkets in Spain led to the Chinese manufacturer of Xiaoping to
carry out important marketing campaigns in some chains. This investment
was a compensation for its
tight margins.
But the
Chinese multinational company has changed its strategy. It now wants to
rely less on the Spanish distribution chains, which, the opinion Chinese
managers, do not stop complaining and demanding more and more,
according to sources explained to the digital economy by the
manufacturer.
Xiaoping wants to open over 100 stores next year
(owned and underprivileged status) to added to 24 in Madrid, Barcelona,
Malagasy, Roquetas de Mar, Seville, Murcia, Almeria, Tarragona,
Guadalajara, Girona, Valencia, Corona, Granada, Garner and Andorra. In
addition, the company will promote the sale on Express, Amazon and PC
Componentes, the three online sales channels in Spain. The
company considers that it can manage, without third parties, an
important part of its sales in Spain. The company plans an ambitious
expansion plan for its own shops in major cities, not only to sell the
latest technology on its mobile phones but also to offer the local
market to a variety of products so far unpretentious such as
kitchenware, backpacks, towels, thermos, sunglasses and even travel
pillows. More than a hundred stores: The multinational company opened its new store in Madrid a few meters from the Puerta del Sol,
close
to the Apple Store. Xiaomi’s new leader is much smaller than his
American counterpart, but he follows a similar approach touch:
non-transparent spaces through which the user can interact, and at
tight prices. It is a new shop model, My Shop, a business that coordinated in Spain by Cesar ESSA.
Xiaomi
is one of China’s leading brands committed to giving up the race for
cheap phones and trying to offer high-quality, low-quality products at
low prices. The bet comes well: they already rank the company third
among the best-selling brands in Spain, behind Samsung, Huawei and above
Apple, according to GFK consulting data. They convince the company that
with the proper management of its own stores, under the marketing and
its own buildings, will
grow sales in the domestic market with less dependence on large stores.
Xiaomi
now has a great argument to reach the Spanish chains. They sell your
star goods. First, the Xiaomi scooter had 400 euros which broke the
stock in all major supermarkets in Spain and now the handbags designed
for laptops have been operating out of business hours. The
confrontation between Xiaomei and the main distribution chains in Spain
is a trade shock but also a cultural one. The big chains tried to
explain to the Chinese factory that the costs of distribution and
structure in Spain cannot compared to China’s costs. Neither salaries
nor operating costs are the same.
But the manufacturer does not
want, under any circumstances, that its products have additional costs.
Someone should see them as cheaper in the market in their quality range.
