LeEco to exit offline smartphone sales, slow down new product launches in India
Last month, China based device maker LeEco entered the U.S market. Soon after, the company’s chairman Jia Yueting revealed that LeEco is facing a financial crunch due to rapid expansion. After making a grand entry into the India market in January, it appears that LeEco is feeling the heat of financial crunch in the country as well.
According to a report by Economics Times, LeEco is making a strategic shift and will slow its future plans in India after its Chinese parent is reeling under severe financial trouble.
Back In April, LeEco had applied for single-brand license in India to set up its own store in the country through the franchisee route to sell its products. Moreover in June LeEco started selling its smartphones via retail stores in the country. But now LeEco is exiting the offline market and will shutdown offline operations entirely. In addition, the company has cut 1,000 in-shop jobs as well as is slashing its advertising budget.
Since it’s debut in the Indian market, LeEco has launched a slew of products including smartphones, TVs and accessories. The report further says that LeEco will slow down launches of new products in India for the next couple of months until its financial crisis eases.
Now, LeEco’s focus will be on online market through Flipkart, Amazon, Snapdeal and its own-estore, LeMall in the country, since the cost of online operation is much lower than offline.