Xiaomi has caught up with Samsung Electronics and Sony in the Japanese smartphone market, known as the 'graveyard of Chinese phones,' by emphasizing cost performance. To maintain its upward momentum, Xiaomi plans to open offline stores in Japan and accelerate its market expansion.
According to Xiaomi Korea on the 25th, Xiaomi opened its first offline store in Japan on the 22nd at AEON MALL in Saitama City. The company plans to open a second store at AEON MALL in Kawaguchi City on the 5th of next month. Industry experts see Xiaomi's expansion of offline stores as a way to accelerate its growth in the recently booming Japanese smartphone market.
According to market research firm Counterpoint Research, Xiaomi's market share in the Japanese smartphone market (based on sales) was 6% last year, tying with Samsung Electronics (6%) and Sony (6%). Until 2023, Xiaomi's market share had not been separately accounted for and was estimated to be less than 1%.
In the Japanese smartphone market, Apple holds half the share, while Samsung Electronics, Sony, Sharp, Google, and others share the remaining market. Notably, while the market shares of major smartphone manufacturers have declined, Xiaomi has grown uniquely. Specifically, Apple's share fell from 53% to 49%, Google's from 9% to 8%, Samsung's from 7% to 6%, and Sony's from 8% to 6%.
Xiaomi's rapid growth is interpreted as a response to the popularity of cost-effective products amid economic downturn. Counterpoint Research noted, 'Japanese consumers' preference for reasonably priced smartphones allowed Xiaomi to grow.'
Xiaomi launched mid-range products in Japan, including the Redmi 14 series priced around 100,000 won and the Poco series priced between 200,000 and 300,000 won. Additionally, expanding its high-end lineup with products like the Xiaomi 14 Ultra, which is equipped with the Qualcomm Snapdragon 8 Gen 3 processor, also positively influenced its market share growth.
However, experts diagnose that unlike Korea, which has a telecom-centered device sales structure, Japan's well-developed self-supply market allowed Xiaomi to succeed in its market expansion. Because sales through telecom代理点 (agents) are not the main focus like in Korea, Xiaomi's online sales strategy was effective.
Anjeong Sang, adjunct professor at Chung-Ang University's Graduate School of Communication, explained, 'Japan has a self-supply-centered market, which allows various manufacturers to compete, and products can be purchased cheaply online instead of through offline代理点 (agents). This is why Xiaomi, which has strengthened its online sales strategy, was able to rise rapidly in Japan.' He also pointed out that 'in Korea, the close ties between telecom companies and manufacturers lead to a supply of devices centered around domestic manufacturer Samsung Electronics.'
According to Counterpoint Research, Samsung Electronics holds about 73% of the South Korean smartphone market, while Apple accounts for about 25%. The market share of foreign smartphones, excluding Samsung and Apple, is only around 1%.