Chinese brands reap ‘eyes’ in Russia’s economic war


Throughout the past year Hundreds of global brands have withdrawn from Russia in response to the invasion of Ukraine. That made the Russians look for alternatives. chasing from smartphones to cars


The beneficiaries of this are Chinese rival brands. Whether it’s smartphone giant Xiaomi or car maker Geely, sales have skyrocketed in recent months.


Various smartphones from Xiaomi, along with other Chinese brands like realme, have topped the sales charts, according to Counterpoint Research, topping the best-selling list that once belonged to the iPhone and Samsung Galaxy.


In fact, products from Chinese manufacturers were already popular in Russia before the war. It accounted for around 40% of the smartphone market in December 2021. Even after the Russian invasion of Ukraine, Chinese brands now dominate almost all of the market, accounting for 95% of the market in December 2022.


On the other hand, Samsung and Apple, which usually rank No. 1 and No. 2 respectively, saw their combined market share drop from 53% to just 3% over the same period. Because both companies withdraw their business from Russia.


Counterpoint Research deputy director Jan Stryjack said Chinese budget smartphone brand Xiaomi, realme and HONOR In Q3 2022, the three brands increased their shipments to Russia by 39%, 190% and 24% respectively compared to the previous quarter.


Not just smartphones Over the past year, Chery and Great Wall Motor, Chinese automakers, Each jumped into the top 10 of the best-selling car brands, while BMW and Mercedes-Benz each rose to the top 10. Germany’s vehicles are disappearing from the streets, according to data from S&P Global Mobility.


This aligns with a report from AutoStat that Russians bought a record number of Chinese cars last year. Sales of Chinese brands in Russia rose 7 percent in 2022 to 121,800 units.


while the Russian car brand LADA, which has been popular with consumers since the pre-war period It’s market share is also growing, from about 22% to 28% by 2022, according to S&P data.


Global automakers have withdrawn from Russia. After Moscow led its invasion of Ukraine, Renault sold a majority stake in LADA in May last year, along with Hyundai and Kia, two South Korean automakers. That each withdrew their business from the white bear car market


“It created a huge hole in the market,” said Tu Le, founder of Beijing-based consulting firm Sino Auto Insights. “And China is glad to plug that loophole.”


Image: Getty Images


The post Chinese brands virtue of becoming ‘eyes’ in Russia’s economic war appeared first on THE STANDARD.


Please enter your comment!
Please enter your name here