China’s Xiaomi is moving fast to team up with Korean retailers, inking distribution agreements for the Korean market. Xiaomi products are becoming more and more popular for their excellent value proposition, and it seems like the Chinese company is setting out to dominate the Korean market. (Image : Yonhap)
SEOUL, March 4 (Korea Bizwire) – China’s Xiaomi is moving fast to team up with Korean retailers, inking distribution agreements for the Korean market. Xiaomi products are becoming more and more popular for their excellent value proposition, and it seems like the Chinese company is setting out to dominate the Korean market.
Xiaomi created a craze in Korea without once advertising its products. 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.
Mi Band of Xiaomi. (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.
Now Xiaomi seeks to team up with Korean allies and begin to sell their products in earnest.
Yeoumi, a Korean retailer, announced that it had signed a contract to import and distribute Xiaomi products including fitness trackers, air purifiers, external batteries, scales, Bluetooth speakers, luggage, thermometers, and bicycles. However, Xiaomi’s smartphones, tablets, TVs and routers were excluded from the deal.
Lee Seung-hwan, the head of Yeoumi, commented that Korean consumers are well aware of the high quality/price ratio that Xiaomi products offer, and noted that the company already has a well-established fan base in Korea.
The ‘Xiaomi fans’ don’t stop at purchasing various products of Xiaomi. 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.
Coma Trade, another Korean retailer, revealed that it had also signed an agreement with Xiaomi, and will soon be selling the company’s products in the Korean market. The products on offer have yet to be determined, but Xiaomi’s most popular products including smart bands, external batteries and scales are likely to figure in the deal.
Officials from Coma Trade explained that they are currently focused on developing an after-sales service (A/S) network for Xiaomi products. The company also plans to expand from Seoul to other major Korean cities.
After topping smartphone sales charts in China, Xiaomi has diversified its efforts and is making the shift from smartphone manufacturer to producer of a wide range of consumer electronics products.
Products of Xiaomi. The USB fan, weight measure, camera and supplimentary battery. (clockwise) (Image : Yonhap)
With the shift, Xiaomi is proven to be responsible for leading the new wave of Chinese electronics. Although once thought of as cheap in price, but also in quality, the products of Xiaomi grasped the hearts of the consumers and changed the way Chinese electronics are perceived.
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.
By Lina Jang (linajang@koreabizwire.com)
