How Russians Switched to Chinese Brands: Chinese Brands Dominate Russia's Tech Market Amid War

Photo: Geely
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As tensions rise amid Russia's war economy, the country's tech market has seen a significant shift. Western brands such as Apple and Samsung have left the market, and Russian consumers have turned to Chinese brands to fill the void. Xiaomi and Geely are among the best, as they have seen an increase in sales in recent months. Once-dominant Western brands have seen their market share plummet as Chinese brands take over, and the question remains whether this trend will continue in the long term.

Chinese brands are gaining popularity on the Russian market. The conflict in Ukraine has led to a mass exodus of global brands from Russia, creating a new challenge for Russian consumers. Chinese competitors are among the companies to benefit, with the two smartphone giants Xiaomi and a car manufacturer Geely according to industry data, sales have increased in recent months.

Photo: Geely

While they were iPhones and Samsung Galaxy Once a hit, the makers of Xiaomi and Realme now at the top of the sales charts, accounting for 95 % of the market, according to Counterpoint Research. The two Chinese car manufacturers are similar Chery and Great Wall Engine jumped into the top 10 passenger car brands, while Germany's BMW and Mercedes disappeared, the data showed S&P Global Mobility.

According to the data provider, the Russians last year Autostat bought a record number of Chinese cars. Sales of new Chinese cars in the country increased by 7 % in 2022 121.800 vehicles, even as the market crashed, a report said last month.

Because Russian consumers are turning to Chinese brands, concerns remain about the reliability and safety of these brands. Russia's market is shrinking as its economy slumps, with smartphone sales falling by 33 % to 21 million, and the car market in the country in 2022 declined by almost 60 % compared to the previous year, according to Autostat.

If the war in Ukraine ends, Apple and Samsung are likely to resume operations in the country and quickly regain smartphone sales, according to analysts. For the auto industry, it is believed that the Chinese will be more and more successful in the future.

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