Chinese Xiaomi and Huawei are preparing a large-scale expansion of retail networks in Russia. Against the background of rising shares of companies in the Russian market of smartphones, they want to increase sales of more expensive devices, that users can only in showrooms, according to “Kommersant”. So, Huawei is planning to significantly expand retail network in Russia, said a source in the Telecom market. According to them, the number of mono-brand stores in the company may increase to 150-200 in the future two years — now the company is looking for a partner for this project, negotiations are including Inventive Retail Group. Huawei to confirm the extension of the network, but talking about a more modest scale: will be open around 20-30 retail stores in major cities of Russia. Now, Huawei in Russia, six stores and one multi-purpose center. Xiaomi plans to open around 100 stores throughout Russia in 2019. Currently retail Xiaomi includes several formats, including 30 mono-brand and multi-brand stores with a focus on own brand and 29 “Islands” in malls. Huawei and Xiaomi are constantly increasing their share on the Russian market of smartphones. According to the analytical center of the GS, the supply of Huawei in Russia in 2016 increased 5.5 times and reached 8,84 million devices by 2018, shipments of Xiaomi in the same period increased 7.2%, to 2.3 million units. Huawei’s shipments in 2018, took the second place after Samsung, and Xiaomi fifth, behind Apple and Nokia. Analyst Mobile Research Group Eldar Murtazin said that the development of branded retail can be costly. Huawei new stores will include not only an open display of devices and pramosone and service centers: this format involves a minimum area of 50 square meters and can cost up to 4 million rubles for the opening of the salon and about 1 million $ per month for his services.
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