Financial crunch forces LeEco to exit offline sales and go slow in India

LeEco is going through a financial crisis and to curb extra expenditures the company will concentrate only on online sales in India. They had invested and were planning to go offline, but unfortunately they are pulling the plug for offline sales.

As per this report LeEco were planning to build retails stores across in India (around 500) and that isn’t going to happen as of now, they are existing the offline market. Not only this, the company is cutting Jobs and also cutting down on their advertisements.

The financial crunch that LeEco is facing will also have an impact on their future launch of new models. They are going slow and waiting for the situation to get better. This means that the company will not launch new handsets for couple of months.

LeEco exiting offline market in India

 

Offline markets are different from online markets and need a completely different strategy and of course offline marketing needs considerable amount of investments. In India Xiaomi, Motorola / Lenovo are doing well in online segment and Vivo, Oppo and to some extent Gionee are doing well in offline segment.

So for now LeEco will concentrate on online sales via Amazon, Flipkart, Snapdeal and Le Mall.

3 Comments

  1. vjain December 21, 2016
    • Pankaj. K December 22, 2016
      • Sreeni December 22, 2016

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