Illegal 3rd party re-sellers to face Xiaomi’s wrath: Report

E-commerce has played a pivotal role in Xiaomi’s success as an up and coming maker from China. Many GizChina readers reading this story on their Xiaomi phones wouldn’t have been able to procure their phones had it not been for e-commerce and Chinese entrepreneurs.

However, like every other thing, there are two sides to this coin as well. Almost every market that Xiaomi has set up shop in, the maker has received rave reviews for its attractively priced devices. The flash sale model, however, means that not everyone who’d want a Xiaomi phone is able to get one… which opens up a market for scalpers.

Now, it makes perfect business sense to stock and sell products that generate huge demand… if done legally. Unfortunately for Xiaomi, and thus its potential buyers, a lot of its phones are being sold through unofficial channels at surprisingly high prices. Not only does it mean that Xiaomi loses a section of its customers, but it can also be a potential threat to Xiaomi’s image. Chinese phones are already a sensitive enough subject.

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India’s Manu Jain said that the company would be taking legal action against 3rd party resellers participating in such transactions. Jain also added that what hurt the company the most was the fact that the resellers made their sites and stores appear as though they were official Xiaomi stores, which as we all know, isn’t the case.

[Source, Via]
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  1. mf1gt3r
    February 23, 2015

    Very necessary.

  2. bozo
    February 23, 2015

    yea, most of people think “xiaomiworld, xiomishop” etc are officials, while are they crap. get rid of them !

    • balcobomber25
      February 23, 2015

      Xiaomiworld and Xiaomishop usually are the best option to buy a Xiaomi phone outside of China. They usually offer very good prices with free accessories and good support. I think Xiaomi is talking more about the shops that sell the Mi4 and Mi Note for nearly double the retail price.

      • Angry Mobile Nerd
        February 23, 2015

        I beg to differ, I think Xiaomi has its sights on shops just like Xiaomiworld and Xiaomishop because regardless of good they are, they are using “Xiaomi” in their store name and domain hence the average internet dolt might mistake it for being an official Xiaomi online store.

        If Xiaomi actually in fact supports (works with) either of these two stores (ie. by directly supplying phones), they should just buy one of them out and make it official.

        • balcobomber25
          February 23, 2015

          Given how both of those shops always have stock of the latest Xiaomi device before anyone else does and they virtually never run out, I am willing to bet they have some sort of agreement with Xiaomi.

  3. Airyl
    February 23, 2015

    That picture is oddly fitting.

    • February 23, 2015

      Yeah, a lot of thought went into that 😉

  4. Alex
    February 23, 2015

    Well Xiaomi, open up a webshop for international buyers or give us a trustworthy reseller with stock… It seems we want your products so much, well give us that opportunity!

    • RRRobert
      February 23, 2015

      I tend to agree with you, but… as long as Xiaomi is willingly not giving any priority to the sales to international markets outside China and India, they are in a way paving the street for unofficial resellers to meet these demands. Thus flipping the coins backwards 😉

    • Guest
      February 23, 2015

      They already have one it’s…..

    • balcobomber25
      February 23, 2015

      While an official store is the most obvious choice it is not always that simple, especially for a company as young as Xiaomi is. Xiaomishop and Xiaomiworld are both trustworthy resellers who work with Xiaomi and offer close to retail prices.

    • Akimitsui
      February 23, 2015 is a trusted reseller. They have better prices in general from Xiaomishop and Xiaomiworld, I have bought my mi4 and various accessories from them without issue.

  5. BotondKisKovacs
    February 23, 2015

    As long as they are actively ignoring European and American demand, I don’t see how this can be stopped or why it should be stopped. They are not losing a section of their customers because of the scalpers, they are gaining customers so loyal that they are willing to pay more because Xiaomi won’t/can’t sell on 2 entire continents where people want their products and loathe paying double/triple prices for bloatware ridden mainstream brand phones.