Poco, the sub-brand of Xiaomi, is looking to ramp up its offline presence as part of a broader strategy to increase its market share and compete with the top smartphone brands in India over the next few years.
The company’s goal is to secure a place in the top five players in the market within the next three to four years, with an emphasis on achieving double-digit growth, according to Himanshu Tandon, Country Head of Poco India.
Poco Sees Incredible Growth
Tandon explained that the company has already seen impressive growth, with a more than 110% increase over the past two years, propelling Poco from the 10th to the 6th position in India’s smartphone market. According to International Data Corporation (IDC), Poco captured a 5.8% market share in Q3 2024, with a 6.5% year-on-year growth in shipments.
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“We began as an online-first brand, primarily focusing on Flipkart until 2023,” Tandon said. “This year, we’ve expanded to Amazon as well. On the offline front, we’ve partnered with Jio for distribution.” Poco currently has a 70:30 sales ratio between online and offline channels, but the brand is steadily growing in both spaces.
Poco Faces Challenges from Industry Groups
While Poco’s growth has been strong, the company is facing challenges from some industry groups. Retailers like the All India Mobile Retailers Association (AIMRA) and the Confederation of All India Traders (CAIT) have raised concerns about the brand’s alleged collaboration with e-commerce giants like Amazon and Flipkart, accusing them of unfair pricing practices that hurt offline retailers and lead to grey market sales. These practices, they argue, deprive the government of tax revenue and distort the market.
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Despite the controversies, Poco’s diverse product lineup, including the budget-friendly C-series, the M-series, the performance-focused X-series, and the premium F-series, is expected to continue driving its growth across both online and offline channels.
