Xiaomi is selling like a hot samosa in a rainy season. But Xiaomi is still worried, the reason is simple, because of the fake products in market sold under its brand name. The time when world is thinking that Samsung is the competitor of Xiaomi the CEO of the company Mr. Lei Jun is worried about the fake products eating the potential sale the company could have. A Bloomberg reports states that a large chunk of revenue stream is now engulfed by the pirate power banks which are sold under the name of Xiaomi.
Why so much tension about the fake product?
Actually what will happen if you come to know that only one out of tree products available in market is original. Which means that if the fake products had not been there then the comapny would have generated double or maybe triple the revenue it is generating. And the problem is actually highest in case of power banks.
According to Mr. Lei :
“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 sale of Mi Power Banks was less than half of what it should have been last year. Xiaomi managed to sell a total of 14.6 million units of Mi Power Banks last year." According to him, "What is worse is that counterfeiting not only happens outside of China where there might be supply constraint, but it also exists in the home country”
The reason for this much amount of counterfeiting is simple, it is the gap between demand and the supply. Due to awesome products and low prices Xiaomi is heavily demanded but company does not provide that much amount of products and hence the void is fulfilled by these fake product makers. Anyways we would suggest all that if you wish to buy any Xiaomi product then kindly buy it online from a trusted site like Flipkart which have exclusive tie up with the company. Let's see how Xiaomi couter this problem of counterfeiting.
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