Korean electronics giant loses dominant position in Russia
South Korean tech giant Samsung has been overtaken by Chinese firm Haier at the top of Russia’s market for television sets, business daily Kommersant has reported.
Sales of TV sets in Russia jumped by 35-40% overall between January and September as Chinese vendors rapidly filled the void left by exiting firms, the outlet said on Saturday, citing data from IT company Fplus.
Samsung had dominated the Russian market for nearly a decade. However, after being outside the top three in 2022, Haier’s market share in Russia surged to 11.5% in volume terms and to 15.3% in monetary terms in the first nine months of 2023, the outlet noted.
Samsung’s sales of TV sets plummeted to just 5.1% compared to 25.3% in the same period last year, data showed. Experts have warned that if international sanctions remain in place, departing companies risk completely losing the Russian market, leaving China’s Haier and Hisense to jostle for leadership.
“We are now seeing a reshuffle of participants’ shares on Russia’s electronics market. It happens not only in the TV sets segment, but also in other categories of household appliances,” said Anton Guskov, head of PR at the Association of Trading Companies and Manufacturers of Electrical Household and Computer Equipment.
“Chinese and Turkish brands are now leading the market, replacing brands that have either left or reduced their presence on the market,” he added.
Russian TV set manufacturers such as Hartens or RAZZ are also said to have good a chance of competing with Chinese brands after state support was ramped up for local producers.
“It may take time as buyers should get to know Russian equipment better and make sure of its quality. But it could happen as early as next year,” Finam expert Dmitry Baranov told Kommersant.
Samsung joined other tech majors in suspending shipments of goods to Russia last year in the wake of Ukraine-related sanctions. As a result, the company’s products have become much more expensive in the country, giving its rivals an edge.
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