Xiaomi’s automotive strategy: fusion of direct sales model and agency model
In a strategic move aimed at expanding the brand’s presence and strengthening customer engagement, Xiaomi’s automotive channel will adopt a sales strategy similar to that of XPeng Motors, with direct sales and an agency model. is combined. Officially known as the “1+N” model, this approach aims to improve consumer accessibility through an extensive network of sales channels. However, direct sales and agency sales systems can overlap, which can lead to internal conflicts if not carefully managed.
Direct sales: the basis of Xiaomi’s new retail strategy
According to William Lu, partner and president of EV Group, direct sales are the backbone of the company’s new retail strategy in the automotive sector. Preparations for this strategy have already begun, with several EV Home stores undergoing renovations in various locations. Exhibit vehicles will be on display at these stores by the first quarter of next year. An example of this strategy in action is relocating his EV Home store in Shanghai to a larger venue that was previously a Motors dealership.
Criteria for dealer candidates
EVs are setting the bar high for potential dealers. The company requires potential dealer partners to rank in the top 100 national auto dealer groups or boast strong credentials in their local business. In addition to these prerequisites, candidates must possess valuable commercial district and customer resources. Preference will be given to those with experience selling luxury cars or mainstream new energy vehicles.
EV future plans
Aiming to become one of the world’s leading car manufacturers, Xiaomi has unveiled its first car, the Xiaomi SU7. The company plans to invest $10 billion in its EV business over the next 10 years. Xiaomi CEO Lei Jun expressed his commitment to the project, saying the company will leverage its expertise in software and hardware integration to develop a “dream car” for the masses and contribute to the global automotive industry. The company aims to become a major player in the industry. The company also signed cooperation intent agreements with 14 initial sales and service partners located at its headquarters in Beijing.