Why is the change in E-Commerce rules good news for Samsung and bad news for Xiaomi?

The FDI policy for e-commerce has been tightened. The biggest advantage of this is South Korea’s company Samsung. At the same time, Samsung will leave Chinese company Xiaomi behind this policy. That’s because Samsung is more active in the offline market than Xiaomi. Partner of Technology Market Research Counterpoint and Research Director Neil Shah has said that this is a big opportunity for Samsung because 70% of market leader sales are from online channels.

Exclusive Deals:

The government has refused online deals to offer exclusive deals to products on their platform. At the same time, it has been said that a vendor can sell only 25 percent of his inventory of e-commerce platform. According to analysts, this change is in Xiaomi, For OnePlus, Honor and Realm, it will prove to be bad because these companies depend on e-commerce websites for the maximum sale of their products. This time too, e-commerce websites have sold more than offline. Let us know that after the change in the rules, this picture can change after 1 February 2019.

Xiaomi made 27 percent and Samsung had dominated the 2018 with 23 percent market share. Both of these companies can stay in top slots in 2019. According to analysts, Samsung will benefit from changes in regulation. However, Xiaomi will not let anyone snatch his top spot. For this, he will focus more on the offline market. According to the counterpoint, up to 2 years ago, only 5 percent of the sales of Xiaomi came from the offline market. But now the company’s sales comes in 30% of the offline market. According to reports, the company is focusing on opening 500 MI stores and 5000 outlets by 2019.