Xiaomi warns sellers against illegal sale of Xiaomi products

In the wake of Xiaomi’s strategy of selling the Chinese smartphones in India via flash sales, Xiaomi is witnessing a huge issue of illegal online sellers and black marketers, with regards to Xiaomi smartphones. Ever since Xiaomi, the Chinese smartphone manufacturer, stepped into India and wooed the masses with high-end budget smartphones, Xiaomi has seen massive sales and fan following in India. However, the smartphones were available only via online flash sales, where the customer has to register a week before the sale and try grabbing it within a few seconds of the sale window.

Though the sales were successful, there are many fans that end up with nothing in their shopping cart. The reason—too many registered customers and too little products for sale. Cashing on the scenario, many people have been buying Xiaomi smartphones using an online browser script, increases the chances of buying a smartphone at the flash sales. However, there are many who opt for more than one handset at the sale, using multiple accounts, and then sell them at a higher price on different websites, such as eBay, Quickr, OLX and many more. Though selling these handsets online could be considered legal (in a way), Xiaomi is trying to cut down on the menace.

Previously, Flipkart would keep the window open for a few hours so that the customer can pay for the goods at ease, and this also keeps Flipkart’s website from failing with excess customers trying to pay at the same time online. However, this causes losses for Xiaomi and Flipkart as people would keep the product in the cart, wait for a potential buyer, pitch for a high price (as the products are scarce) and then sell them. Last week, Xiaomi Mi 4 sales saw something different—after the sale ended, the payment window was cut down drastically. This meant that the buyer had a short span of buying the product. While this worked for Xiaomi and Flipkart, others who illegally cashed in on the sale saw it as an issue. This could cut down the menace, but fans who desperately want a Xiaomi handset would pay a higher price for it anyways. However, this will reduce in time.

To take this matter seriously, Xiaomi has now warned websites other than Flipkart and Airtel, who are the legal selling partners for Xiaomi, to stop selling Xiaomi products on their portal. Websites that are selling products in the name of Xiaomi are considered illegal sales and Xiaomi will take illegal action against the shopping website.

In a statement to Deccan Chronicle, Manu Jain, head of Xiaomi for India, stated that “Our authorized sellers in India are only Flipkart and Airtel. All other portals and retail stores which are selling our products are doing it without our permission. Some of these portals are using ‘Xiaomi’ name, and hence are infringing on our trademarks. We are requesting these portals to stop selling our devices; else we will be forced to take legal action, so as to protect our interests.”

Xiaomi seems to be serious about the issue and has sent out a warning to the websites. To curb the problem further, Xiaomi is in talks to manufacture handsets and other products in the country, which can help increase the manufacturing quantity and sell them without the requirement of flash sales. Xiaomi is also in talks on starting their own online retail shop, where Xiaomi fans can buy Xiaomi products with confidence.

Xiaomi is a Chinese smartphone manufacturer and set foot in India in July last year. Their sales started with their flagship Mi 3 handsets and proceeded with budget smartphones such as the Redmi 1S and Redmi Note/Note 4g. Presently, Xiaomi’s 2014 flagship smartphone Mi 4 and the Redmi Note 4G phablets are on sale on Flipkart. Xiaomi has also partnered with Airtel for sale of the Redmi Note 4G, which takes advantage of the high-speed 4G data network from Airtel. Xiaomi will soon be debuting many more products in India, which include the next flagships, the Mi Note (and Mi Note Pro possibly), Mi Tabs, Mi TV and a lot more. Xiaomi is presently ruling the top third position globally as the largest smartphone manufacturer in the world. Xiaomi intends to take on Apple to rise to the top, in a few years span.