Xiaomi unveils a new strategy to take on Samsung head-on

[Guest mansja]

 

 

Xiaomi has taken a strategic step to challenge Samsung on its home turf by establishing an independent subsidiary in South Korea. According to BusinessKorea, the Chinese company's new headquarters in Seoul marks the beginning of a more aggressive approach to conquering one of the world's most challenging markets for foreign brands.

Entering South Korea as a foreign tech brand is a significant challenge due to both the trade barriers imposed by the country and the strong loyalty of consumers to local brands. These factors have earned South Korea the reputation of being a "graveyard for foreign smartphones."

Xiaomi, however, is determined to change this narrative. Its strategy goes beyond partnerships with local distributors—like it does in Brazil—and focuses on agreements with major telecom operators, such as SK Telecom, KT, and LG Uplus. The goal is to expand the reach of its high-end smartphones, including the Xiaomi 15 lineup, and strengthen its foothold in the market.

Winning over Koreans with a Chinese ecosystem

Beyond smartphones, Xiaomi is betting on its diverse range of products, which includes smartwatches, robot vacuums, and other smart devices, aiming to offer a complete ecosystem at affordable prices.

The plan also involves opening physical stores in strategic locations in Seoul, such as Gangnam and Hongdae. These neighborhoods are nationally prominent and lend a higher status to the brand's stores, helping attract young consumers and tech enthusiasts.

This move is seen as an attempt to compete directly with Samsung and Apple, the leaders in the local market. As the third-largest global smartphone manufacturer, Xiaomi is using South Korea as a testing ground for its ability to compete in an extremely demanding market.

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