Xiaomi Automobile Accelerates Expansion with City Recruitment Plan, Prioritizing 1+N Sales Model

In a recent announcement on the official WeChat public account of Xiaomi Motors, the company revealed its ambitious city recruitment plan, signaling a strategic move to establish a prominent presence in key markets. Xiaomi Auto aims to revolutionize the automotive retail sector by integrating the successful retail experience of the Xiaomi Group into its sales model.

The Xiaomi Auto sales model is designed to be at the forefront of the industry, blending elements of the Xiaomi Group's new retail system. By embracing a "direct sales" core, the company aims to harness the power of high-quality social forces while leveraging data to maximize business efficiency and enhance user experience.

According to Xiaomi Auto, the "1+N" model will take precedence in covering leading markets and will be gradually deployed nationwide. The "1" component represents Xiaomi Auto's self-built and self-operated delivery center, focusing on delivery functions and encompassing both sales and after-sales services. The delivery center stands as a benchmark for Xiaomi Auto's omni-channel experience and operational efficiency.

The "N" element signifies agent sales and user service contact points. Xiaomi Auto will collaborate with top 100 automobile dealer groups or regional strong merchants to establish integrated automobile sales and service stores in mainstream automobile business districts. Operating under the "agency sales + authorized services" framework, these stores will be strategically located in core commercial plazas and Xiaomi Home outlets, tapping into Xiaomi's existing 3C retail channel advantages to further enrich store categories.

As part of its expansion strategy, Xiaomi Motors has initiated a recruitment plan across 17 cities, including Suzhou, Chongqing, Ningbo, Nanjing, Wenzhou, Wuxi, Xi'an, Foshan, Zhengzhou, Changsha, Dongguan, Tianjin, Hefei, Xiamen, Qingdao, Haikou, and Shijiazhuang. The recruitment is for Xiaomi Auto Sales and Service Integrated Stores (2S), offering agent sales and authorized after-sales service functions. Notably, the after-sales service business covers machine repair, metallurgy, and painting services but excludes vehicle resale and delivery functions.

Earlier today, Lu Weibing, partner and president of the international department of Xiaomi Group, as well as the general manager of the Redmi brand, shared on Weibo that Xiaomi Group had established a joint venture with the first batch of 14 sales and service companies at its Beijing headquarters on December 29, 2023. This significant development indicates the acceleration of Xiaomi Auto's sales and service channel construction, moving from the planning stage to actual implementation. The joint venture involves key partners formally signing a letter of intent for cooperation, solidifying Xiaomi Auto's commitment to reshaping the automotive retail landscape.

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