New Delhi: What is stopping Chinese smartphone giant Xiaomi from exceeding its proven success over top brands like Samsung and Apple? Counterfeits!
Xiaomi has complained that its Mi Power Banks hit only 14.6 million units last year which is less than half of the anticipated sale. The reason for slumping figures is that there are more fakes in the market.
A report on Bloomberg quoted Xiaomi's CEO Lei Jun saying, "What is the biggest problem? There are many fakes. If there were no counterfeits, our sales would be double or triple. The product has been recognized by everyone."
The Chinese vendor was founded in 2010 and today it is recognized as one of the world's most valuable startup at $45 billion.
Xiaomi sells at least three configurations of the Mi Power Bank on its website in China at prices ranging from about $7.90 to $21. At those prices, the revenue lost to counterfeiters would be equal to at least $115 million, Bloomberg report observes.
While all of Xiaomi's products have been able to successfully hit a sweet spot of consumers, Lei said that the company will stay focused on smartphones, televisions and routers, while letting partners supply other products to stock its online store.
The company recently marked its fifth anniversary and was able to sell a record breaking 2.1 million smartphones, 38,000 televisions, and 770,000 smart devices in just 12 hours.
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