Xiaomi taking advantage of the Russia Situation
Where lies Crisis, there could be profit...
Talk about making the most of a crisis situation, you don’t need to look further than Chinese brands like Xiaomi looking to break into the Russian smartphone market.
The conflict between Russia and Ukraine has seen Russia held to many sanctions by the European Union countries and the West as a whole, with many markets withdrawing trading relations with Russia.
But one brand that is looking to make the most of the chaotic situation, and taking its chances in the parallel market to make profit is Xiaomi and other Chinese brands. They have swiftly albeit aggressively made it into the Russian smartphone market to buy off whatever competition that once existed in the market the minute they began to pull out of Russia.
This comes courtesy of a research conducted by the MTS data as revealed by the Russian media, Kommersant.
It reveals that after the pulling out of European and American brands within the country, Chinese smartphone brands like Xiaomi have become more popular with the locals than brands like Apple and Samsung.
The data goes on to show that in July, Xiaomi led the Russian market share among many smartphone peers in Russia ranking first in sales volume as it dominated a 42% of the market.
At second place is Realme whose sales in the Russian market accounts for only 17% which was quite the increase from the previous month.
Samsung falls into the third place category, plunging further from 10.9% to an 8.5%, with Apple a distant fifth with a 7% market share after falling from 9.7% in June.
The supply of Apple and Samsung smartphones in Russia so far has drastically reduced significantly from a 80-90% lower than it was before March. A further drop is also predicted again this year as a result of the poor supply from parallel imports.
While Apple and other brands continue to become unpopular in the Russian market with its low supply chain after pulling out, the Chinese brands slowly see an opportunity to boost its sales and popularity strength in Russia.