Korean Media: Why Can BYD Succeed in Korea, But Not Xiaomi?
On July 26, Korean media outlet *Herald Economic* published an article stating that South Korean consumers' perceptions of Chinese brands are changing. However, not all Chinese companies are receiving equal recognition. BYD has rapidly expanded in the South Korean automotive market, while Xiaomi's influence in the smartphone sector remains limited.
According to industry insiders, Xiaomi’s share in the domestic South Korean smartphone market is less than 1%. Although globally Xiaomi is regarded as one of the major players after Samsung Electronics and Apple, it appears difficult for Xiaomi to expand its market share in South Korea.
Market experts believe the high entry barriers in the South Korean smartphone market are behind this phenomenon. The domestic market has already formed a duopoly dominated by Samsung Electronics and Apple, with strong brand loyalty among consumers. Despite Xiaomi’s products emphasizing price competitiveness, analysts point out that compared to competitors, Xiaomi still lags in premium brand image, after-sales service, and mobile carrier distribution networks.
The case of BYD, another Chinese company, presents a stark contrast. In April this year, BYD sold 2,023 vehicles in South Korea—surpassing the combined sales of three Japanese automakers: Lexus, Toyota, and Honda (1,974 units). Although both are Chinese brands, consumer responses have been markedly different.
This reflects that South Korean consumers are no longer making purchasing decisions solely based on a product’s country of origin. BYD has established itself in the market through competitive pricing and product quality, whereas Xiaomi still struggles to shake off its image as a "second-tier brand" in the eyes of South Korean consumers.
Xiaomi is also actively seeking change, emphasizing the need to enhance brand reputation and service competitiveness in the South Korean market.
In particular, to expand into the South Korean market, Xiaomi is broadening its after-sales service network. Currently, Xiaomi operates eight physical stores in South Korea, some of which serve as multi-functional outlets combining sales and service. Additionally, Xiaomi has established 12 cooperative service centers across the country to improve consumer convenience.
A relevant industry insider stated: “Although South Korean consumers’ resistance toward Chinese brands has significantly decreased compared to the past, consumer demands vary across markets. For Xiaomi to increase its market share in South Korea’s smartphone sector, it must strengthen brand reputation and service competitiveness—not just price competitiveness.”
Original article: toutiao.com/article/1871738692600844/
Disclaimer: This article represents the personal views of the author.