Xiaomi recently debuted in the UK market, sparking considerable excitement. Renowned for its high-quality yet affordable products, the Chinese tech giant garnered attention. The UK, being one of Xiaomi’s major Western markets, witnessed the company’s entry, but it swiftly encountered controversy.
Public Outcry over UK Flash Sales
The Chinese giant offered just two or three units in each ‘crazy deal’ flash sale, promptly marking the devices ‘sold out’ once the sale countdown ended. While Indians and Chinese might expect this, it’s new for the UK. Complaints swiftly emerged on Xiaomi UK’s Facebook and Twitter. The UK ads watchdog also received a complaint, suggesting potential investigation for false advertising, a serious matter unlike in India or China.
As noted by the BBC, anger towards Xiaomi stemmed from its failure to disclose the available number of devices. Xiaomi buried this information in the terms and conditions, only accessible via a bottom link.
Xiaomi’s terms stated buyers would receive phones on a ‘first come, first serve’ basis. However, later, they admitted to using a tie-breaker to select recipients from the pool of buyers.
Xiaomi’s Apology
In an official statement on Xiaomi UK’s Twitter, the company expressed regret, stating, “We didn’t realize the public closely links this term (flash sale) to a specific deal type Xiaomi has executed in various global markets.”
Xiaomi has confirmed that only 10 customers managed to buy it, highlighting the company’s questionable sales tactics. Criticisms regarding such strategies have persisted since the company’s inception, casting doubt on its frequent claims of selling out units within seconds. This situation portrays Xiaomi in a negative light and undermines the credibility of its sales announcements.
Beebom’s Perspective
Xiaomi’s expansion into new markets is commendable, particularly considering its established presence in India, Indonesia, and China. Nonetheless, the controversy underscores a significant issue: the necessity for the Chinese corporation to reassess its approach to Western markets. While India is just beginning to implement consumer-protection regulations for e-commerce platforms, allowing manufacturers considerable leeway with deceptive advertising, such practices are untenable in the UK.
Xiaomi can’t rely solely on flash sales and promotional offers in the UK and similar markets. Strict advertising and consumer protection laws complicate this strategy. Additionally, purchasing patterns differ in these regions. Unlike India’s weekly phone launches, the UK, US, and Canada have designated shopping seasons around new phone releases. Many consumers in these markets lack the time or patience to wait a week for a new smartphone.
We’ve emphasized repeatedly that flash sales deter consumers. Xiaomi acknowledges this issue in India and is working to eliminate flash sales entirely. Replicating this approach in the UK would be imprudent.
Pritam Chopra is a seasoned IT professional and a passionate blogger hailing from the dynamic realm of technology. With an insatiable curiosity for all things tech-related, Pritam has dedicated himself to exploring and unraveling the intricacies of the digital world.
