Reliance Jio, which used disruptive pricing strategies to shake up the mobile phone connectivity space in India, is now in talks with the Chinese electronics major Xiaomi to enter into a long-term partnership that can be beneficial for both the companies.
This marriage of convenience, therefore, will turn out to be a win-win for both, if it gets finalized. It is understood that some hectic parleys have already taken place between the executives on both sides and more talks and discussions may be in the offing.
Within this arrangement could be the plan to sell Xiaomi’s point of sale devices which can facilitate digitizing the supply chain as far as Reliance Jio and the retailers selling its products/ services are concerned. An order for 1 million such pieces has already placed, according to reports.
Xiaomi is already well-entrenched in the Indian smartphone market enjoying almost equal share with Samsung and probably nudging a little ahead even. Xiaomi is leading with shipments close to 8.2 million units, followed by Samsung at over 7.3 million smartphones, Singapore-based research firm Canalys.
Xiaomi has also said that India is one of its most important markets where it will continue to launch products and new categories.
The company, Xiaomi India, has now applied for approvals from the appropriate authorities for launching its products other than smartphones. Xiaomi wants to enter the B2B segment also in the service space.
Reliance Jio has a nationwide network of brick and mortar sales outlets, ‘Reliance Digital’ which it can leverage to add more products on the shelves.
The other area of cooperation is likely to involve Xiaomi’s television sets which Reliance Jio may offer to its broad band customers as bundled devices. Jio’s broadband services, for home use, are about to be launched soon. And Jio may want Xiaomi to develop exclusive smartphones also for it once the relationship crystalizes.