According to Daily Nation, tech company Xiaomi has set up its first Nairobi office this year. This launch is a part of the phone maker’s attempt to compete with rival companies especially Transsion Holdings who distributes popular brands such as Tecno, Infinix, and Itel.
This step comes as Xiaomi has set plans in motion to have an African Department that focuses on markets including Kenya, coming on the heels of expansion in the homegrown Chinese market.
The details of the new plan were revealed by Xiaomi’s chief executive Jun Lei in a staff memo. This document was seen by the online publication, the Business Daily.
The top executive also said Wang Lingming would head the new department.
Analysts said the launch of an African department by Xiaomi shows the company is keen to implement a low-cost strategy by eliminating brokers to increase earnings as it rolls out its expansion strategy in the continent.
Commentators claim that the launch of an African Department by the smartphone maker shows its commitment to carry out a low-cost strategy by removing brokers to maximize profits as it rolls out its plans to dominate the smartphone market on the continent.
Xiaomi had previously announced that its first Kenya office would be ready for business by March.
According to market analyst firm, Canalys, the smartphone company has beaten Apple to the top spot as the leading phone brand in China during the second quarter of 2018.
The company has penetrated the African smartphone market through South Africa, Nigeria, and Kenya.
However, the Business Daily was not able to get details on the intended location of the first physical store from Xiaomi’s global office. Presently, the phone brand reaches its consumers in Kenya via online vendors such as Jumia and Avechi.com.
In a related development, top Chinese phone brands have added efforts to battle for the control of the Kenya phone market. This comes as no surprise as Kenya stands as the fastest growing device market in East Africa.
Increased orders for cheap entry-level and mid-range smartphones in a market where feature phones have a huge demand has caught the attention of the big names in the Chinese mobile phone industry.
In 2018, another Chinese tech firm, Oppo became the latest brand to increase its presence in Kenya after the launch of its most recent product in the African country.
The company has officially set into motion plans to dominate the African market after it’s a recent success in India and China.
- Transsion Holding’s Tecno Enters Top Ten Global Smartphone Shipment for the First Time
- Transsion Group Dominate Smartphone Market Share in Nigeria in Q3 2018
- Xiaomi Set to Go Head-to-Head with Transison Holdings in Africa