1. Types of distribution channels:
1) Direct and indirect channels.
Xiaomi is a fusion of direct and indirect channels. There are direct channels on Xiaomi's official website as well as operator channels and third-party e-commerce channels. This can expand the market through multi-channel sales. It avoids the shortage of people, finances and materials in the initial stage of Xiaomi.
2) Long channels and segment channels
Xiaomi uses short channels for sales. Short channels can reduce circulation links, save circulation costs, and shorten circulation time. The price of Xiaomi mobile phone of 1999 yuan, the complexity of technology, the fashion of Xiaomi mobile phone, and the life cycle of the product determine that Xiaomi is a short channel sales.
3) Broad and narrow channels
Mobile phone is a highly professional product and a valuable and durable consumer product. Narrow channels can easily control distribution. So Xiaomi mobile phones are also a narrow channel.
2. Xiaomi's channel sales strategy:
1) Official channel: Xiaomi's official website
Reason for selection:
a. Xiaomi startups should not take too much risk. Physical channels are risky, costly, channels are difficult to control, and relationships are difficult to maintain.
b. Get inspiration from Apple's sales model. It mainly adopts electronic channels and a distribution model of cooperation with logistics companies.
c. Avoid profit split with physical stores and distributors.
d. Avoid online fraud and redundant costs, and put an end to counterfeit goods.
e. It has a sense of fashion and can attract the interest of young customers.
f. In order to strengthen Xiaomi's own brand influence.
2) Operator channels: China Unicom, China Telecom
Reasons for choosing:
a. Traditional mobile phone distribution channels have major drawbacks and high costs. b. In the
3G era, operators have risen strongly
. c. Operators are powerful, combining channels, networks,
d. Terminal subsidies and services.
e. The operator has a huge number of users and can expand the market.
f. The requirements of mobile Internet market competition cannot ignore the strong strength of operators.
g. Conducive to keeping prices low.
Disadvantages of operator channels:
a. The strong position of operators reduces profits.
b. The reputation of the operator.
c. The influence of the operator's service quality on the brand.
3) Social channels: third-party e-commerce, social IT stores.
Reasons for choosing:
social channels are mainly third-party e-commerce and other IT stores, such as Suning, JD, etc. This is an indirect distribution channel. Belongs to the traditional distribution model,