Since the outbreak of war in Ukraine in February last year, Chinese brands such as Xiaomi have been found to have occupied top-selling products such as Samsung and iPhone in Russia.
According to CNN on the 25th (local time), Counterpoint Research analyzed that while Samsung and iPhone were the best sellers in Russia, Chinese smartphone brands such as Xiaomi and Realme occupied the position.
Chinese smartphone brands were popular in Russia even before the outbreak of the war in Ukraine, but they have more recently dominated the Russian market. According to Counterpoint data, Chinese brands accounted for about 40% of the smartphone market in December 2021, compared to 95% of the Russian market a year later.
On the other hand, Samsung and Apple, which ranked first and second, respectively, dropped their share from 53% to 3% as soon as they withdrew.
Counterpoint Research explained that “cheap brands Xiaomi, Realme, and Honor responded quickly to seize the opportunity.” Russian shipments of these brands in the third quarter of last year increased by 39%, 190%, and 24%, respectively, compared to the previous quarter.
A similar picture is emerging in the Russian automobile market.
According to data from S&P Global Mobility, Chinese automakers Chery and Great Wall Motors entered the top 10 passenger car brands in Russia over the past year. On the other hand, Germany’s BMW and Mercedes have disappeared from this ranking.
According to data provider Autostart, Russians bought a record number of Chinese-made cars last year. Autostart’s report last month found that, despite a slump in the Chinese new car market, vehicle sales in China rose 7% last year to 121,800 units.
Earlier, in response to the departure of global companies, Russia took measures such as permitting parallel imports of smartphones. It allowed goods to be imported from neighboring countries such as Kazakhstan.
CNN, citing an analyst at Counterpoint Research, reported that the move allowed major Russian retailers to continue selling phones from Samsung and Apple. However, he explained that this was accompanied by problems such as not being provided with official services.
According to S&P Global Mobility, in the vehicle sector, Russians also bought products that came through parallel imports knowing that there was no official warranty.
Meanwhile, Russia’s consumer market is shrinking due to the withdrawal of global companies.
According to Counterpoint Research, smartphone sales in Russia last year were 21 million units, down 33% from pre-war levels. Autostat analyzed that last year, the Russian automobile market deteriorated, shrinking by nearly 60% compared to the previous year.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.