Η Xiaomi is a company that has managed to reach the top of the world with the help of its business plan, which is based on a very large percentage, in the marketing of its products through various electronic platforms, and in this way has managed to absorb a huge market share in many countries.
The largest of all these markets is located in India, where the Xiaomi trades through online platforms such as Amazon or Flipkart. Through these online stores, Xiaomi could enter into private agreements, and reap the greatest possible benefits. However, the government of this country has signed a new one law, which prohibits trade agreements through online platforms.
Analysis of this new law in India
Thanks to this new law, the Samsung Electronics could regain the top as the country’s first smartphone maker, a position currently held by Xiaomi . With this new measure, Xiaomi will have to open more physical stores to maintain this position. THE Neil Shah (her partner Counterpoint Technology), said: “This could be a good opportunity for Samsung, since almost the 70% of Xiaomi Smartphone sales, comes from internet channels ".
This law prohibits conducting commercial transactions through online platforms, to prevent the exclusive sale of products on their pages. Experts say that this new law could negatively affect them Xiaomi, Huawei, Jiajia and Oppo, because most of their sales are made through online platforms. According to his statements Faisal Kavusa , founder of a market research company, “Once the new regulations are implemented, Samsung will regain its advantage over Xiaomi in a quarter. Samsung will benefit from the new market regime, until the Xiaomi can expand its channels beyond online sales ".
This shows the big problem that Xiaomi is dealing with, because this is one of the best markets in the world, and it is also very obvious that Samsung will benefit from this legal change. Of course, this will make the competition between these two major players in the technology industry intensify in this country, and it could also be said that it is at the same time an opportunity for them. small indigenous manufacturers in India, to try to take advantage of the new legal status as well.
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