CEO of Xiaomi. Chinese electronics, which have often been thought of as cheap in price, but also in quality, have moved into the spotlight. (Image : Yonhap)
SEOUL, Jan.7 (Korea Bizwire) – Chinese electronics, which have often been thought of as cheap in price, but also in quality, have moved into the spotlight. Sales of Chinese smartphones and small smart devices are on a rapid rise due to reasonable prices and decent performance. Two Chinese manufacturers, Xiaomi and Huawei, are leading the new wave.
Chinese smartphones were neglected when premium phones from Samsung and Apple dominated the world. However, as consumers seek more affordable smartphones in the prolonged period of economic stagnation, and with rapid innovation and technology development in China, Chinese smartphones are in high demand compared to the expensive premium phones which were preferred previously.
Chinese manufacturer Huawei ranked third in global sales of smartphones after Samsung and Apple in 2015. (Image : Yonhap)
Chinese manufacturer Huawei ranked third in global sales of smartphones after Samsung and Apple in 2015.
Huawei’s Y6 was launched in the Korean market exclusively by LG U+ on December 16, 2015. (Image : Yonhap)
Huawei’s Y6 was launched in the Korean market exclusively by LG U+ on December 16, 2015. LG sold more than 10,000 units in half a month, due to its good performance for the price. Word spread fast among consumers who used the device, and sales momentum is increasing.
The Hongmi Note 3 launched by Xiaomi is also becoming popular. (Image : Yonhap)
The Hongmi Note 3 launched by Xiaomi is also becoming popular. The product was sold online through 11st’s open market, which serves as an agent for direct overseas purchases. Even though it was not advertised, analysts estimate that approximately 10,000 units were sold.
Industry watchers predict that since the prejudice against Chinese smartphones is gone, they will have a significant influence on the Korean market in the near future.
According to the online shopping site ‘11st’, battery packs, wearable smart bands and air purifiers from Xiaomi sold out as soon as they were released.
Products of Xiaomi. The USB fan, weight measure, camera and supplimentary battery. (clockwise) (Image : Yonhap)
Xiaomi created a craze without once advertising its products. All the products were sold online, and being able to lower prices to manage offline stores was unnecessary. Xiaomi products typically cost 30 to 40 percent less compared to similar products produced by Korean manufacturers.
Mi Band of Xiaomi. (Image : Yonhap)
Producing only small quantities was another strategy employed by Xiaomi, making the products feel like limited editions, boosting sales and eliminating the risk of carrying excess inventory.
Finally, netizens have been spreading the word about Xiaomi products. Some even uploaded pictures of their visit to the Xiamoi store in Shanghai, and many posted reviews of Xiaomi products on blogs or SNS accounts.
Officials from 11st commented that the Xiaomi products have completely changed the way consumers view Chinese electronics, with their simple design, cheap prices and great quality.
More Chinese brands entered the Korean market following Xiaomi’s success. As the gap in technology levels among countries is closing, Chinese electronics are becoming a threat to domestic manufacturers.
Experts say that the sudden growth of Chinese electronics is not a coincidence. Through continuous development and cheap prices, Chinese brands are making improvements to their products and operations. Also, the Chinese government aggressively supported R&D through policies and financial support, boosting the speed of technological growth.
Experts emphasize that the Korean government should implement policies that can help create an environment where advancements in technology can be made, so that domestic products can maintain a competitive edge.
By Francine Jung (francine.jung@kobizmedia.co.kr)
