Chinese electronics brands are trying to enter the South Korean market, where the local smartphone brands take approximately 70% of the total market share.
Always a way out of crisis? Image credit: EqualOcean
According to media, Xiaomi (01810:HKEX) will sell its 5G smartphone Mi 10 Lite 5G in South Korea through major mobile carriers, as it eyes the chance of gaining a presence in contention with local brands Samsung and LG.
As in China, the smartphone vendors have been competing fiercely by lowering the selling prices of 5G phones since the 5G network opened to massive use, the lowest selling price of Chinese 5G smartphones was pushed under USD 280.
Before Xiaomi’s entry, the 5G phone with the lowest price was Samsung’s Galaxy A51, selling at USD 478. Xiaomi’s entry strategy aligns with its price-efficiency brand image, hitting the South Korean market with the cheapest 5G phone option at USD 375. Although the South Korean market is centered around premium smartphones, it is still highly possible that Chinese vendors will enter the market, targeting the middle-and-low-end segment.
Xiaomi’s entry into South Korea is a deliberate move to gain a breakthrough for its overseas business crisis. The company’s largest overseas market, India, is under a serious pandemic, and economic regression and political turbulence with its neighboring countries followed. Overseas sales might see a sharp decline. With a definite price advantage in South Korea, Xiaomi stands a chance of boosting revenue in the country.