{"id":4283,"date":"2018-11-12T20:06:12","date_gmt":"2018-11-12T20:06:12","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/xiaomi-criticised-for-uk-smartphone-1-flash-sale\/"},"modified":"2018-11-12T20:06:12","modified_gmt":"2018-11-12T20:06:12","slug":"xiaomi-criticised-for-uk-smartphone-1-flash-sale","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/xiaomi-criticised-for-uk-smartphone-1-flash-sale\/","title":{"rendered":"Xiaomi criticised for UK smartphone \u00a31 flash sale"},"content":{"rendered":"\n
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\"XiaomiImage copyright<\/span>
\n Xiaomi<\/span><\/p>\n

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Image caption<\/span>
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\n Only three Mi 8 Lite phones could be bought in the first flash sale
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“Flash sales” publicising a Chinese smartphone company’s UK launch have sparked a backlash on social media.<\/p>\n

Xiaomi advertised two of its new handsets for \u00a31 each last week as part of a “crazy deals” promotion.<\/p>\n

But it has emerged that each flash sale involved only two or three phones and Xiaomi had set its website to say: “Sold out,” as soon as the sale opened.<\/p>\n

The UK’s ads watchdog said it had received a complaint and was now deciding whether to investigate.<\/p>\n

Xiaomi said it hoped customers would not be discouraged from taking part in future campaigns.<\/p>\n

“We’ve held flash sales all over the world since our first one back in 2013 as a way to give a lucky few customers a chance to get their hands on our smartphones at incredibly low prices,” said a spokeswoman.<\/p>\n

“[This] was our first in the UK and attracted enormous levels of demand, far beyond what we were expecting. <\/p>\n

“We’re sorry so many Xiaomi fans missed out this time round but we hope they’ll take part in future flash sales as and when we announce them.”<\/p>\n

‘Big deal’<\/h2>\n

Xiaomi’s business model is based on selling its hardware at low profit margins<\/a> and it has regularly held flash sales in other markets as a relatively cheap way to attract attention and gauge demand.<\/p>\n

It typically offers thousands of devices<\/a> at a more realistic prices when doing so. But even when it held a similar \u20ac1 (88p) event in Spain last year, it provided 50 units.<\/p>\n

By contrast, the first two UK flash sales involved only three phones apiece, while two follow-ups were limited to two units.<\/p>\n

This fact was not mentioned on the main sales page. Instead, users had to click on a link to its terms and conditions<\/a>, found at the foot of the site, and then scroll halfway through them.<\/p>\n

Dozens of users complained on Xiaomi’s Facebook page after failing to obtain a phone.<\/p>\n

“For a company worth around $50bn launching in a brand new country and making a big deal about it they could have done 50 easily. They didn’t. They’ll lose potential customers over this,” wrote Simon Hodge<\/a>.<\/p>\n

Another user, James Bowen, said<\/a>: “What a joke, as soon as the timer hit zero, it was out of stock – just clickbait to get people to visit the website.”<\/p>\n

One user subsequently analysed the webpage’s code<\/a> and pointed out it had been set to say: “Sold out,” as soon as the sale had opened – without even checking to see if the allocated stock had indeed been purchased.<\/p>\n

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Image copyright<\/span>
\n Reuters<\/span><\/p>\n

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Image caption<\/span>
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\n Xiaomi held a launch event for its products in London last week
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However, Xiaomi denied accusations this indicated no phones had been sold at the promised price.<\/p>\n

Instead, its UK sales manager Wilkin Lee said, a lottery had taken place made up of those who had pressed the button closest to the set time.<\/p>\n

“Of the thousands who clicked ‘buy’ simultaneously, the tie-breaker is done by selecting the winners randomly,” he tweeted<\/a>.<\/p>\n

But users have complained the terms and conditions made no mention of a lottery, stating only that the phones would be “given away on [a] first-come, first-serve basis”.<\/p>\n

Moreover, one user pointed out at one point the text had not stated how many phones would be offered<\/a>.<\/p>\n

A spokeswoman for Xiaomi has confirmed that this was the case but added that this “mistake” had been fixed the day before the first sale.<\/p>\n

This could still have consequences as the Advertising Standards Authority’s rules state that consumers must be informed<\/a> “clearly and in a timely fashion” about the limited availability of a product.<\/p>\n

“If the ad didn’t include significant conditions and the terms and conditions were changed part way through the promotion, then that could potentially be a problem,” said a spokesman for the ASA.<\/p>\n

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Image copyright<\/span>
\n Getty Images<\/span><\/p>\n

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Image caption<\/span>
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\n Xiaomi is the world’s fourth-bestselling smartphone brand
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One marketing expert said there were lessons to be learned.<\/p>\n

“Viral campaigns exude novelty but there are growing concerns about whether a PR [public relations] stunt like this comes at the cost of consumer trust,” said Dr Mariann Hardey, from Durham University.<\/p>\n

“Xiaomi’s promotion sought to create faith in what is a little-known brand.<\/p>\n

“But it has put its reputation in a precarious position by pursuing a marketing campaign that is viral both in terms of spreading widely and having had a damaging effect.”<\/p>\n<\/p><\/div>\n