The announcement of higher margins than offline retail has been made by Xiaomi in Gujarat for now, though it is expected to follow suit in other states soon as well. Along with higher margins, the company plans to offer the same discount on both channels, something we have seen in sales throughout 2020. Cashback and EMI offers, special schemes, and discount scheme settlement within 7 days are the other major plans for offline retailers that Xiaomi has in the pipeline for the festive season.
The letter in its entirety is posted below:

In the letter, the company has reiterated that it will not have any online-exclusive smartphones, that too not just during the festive sales. The company says neither did it ever have any online-only smartphone, nor will it have one in the future.
The offline market has become the next big growth channel for smartphone brands in India, with all brands eyeing the lion’s share of the pie. While Samsung, Vivo, and OPPO have enjoyed a healthy offline-to-online sales split, Xiaomi and more recently Realme have largely depended on online sales to boost their growth. However, the two brands have been successful in making the shift to offline.
To aid this offline growth, Xiaomi earlier this year brought parity to online and offline prices and discounts, which ensured customers don’t flock to e-commerce sales. Moreover, it ensured faster delivery of stock to offline stores. The company presently has 10 smartphones, two laptops, and a host of accessories and smart devices, along with a network of over 10,000 retailers and runs its own stores as well.