HONG KONG, May 15 — Huawei is revamping its retail strategy and aggressively opening flagship stores in China, with some just a stone’s throw away from Apple shops, as it seeks...
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Huawei opened four such stores in major Chinese cities between December and February, an aggressive marketing blitz by a company that had largely relied on licenced distributors and is rebounding from US sanctions imposed in 2019 that had crippled its smartphone business for four years until it could source domestic replacement parts.
“As Huawei now manages to ship in large quantities, given the good profit margin they could provide, have become willing to purchase Huawei devices again,” Qi said. “Previously, many couldn’t get stock and their 4G devices didn’t sell well.” Its renewed marketing push poses a major challenge to Apple, which suffered a 6.6 per cent plunge in iPhone sales in China to 10.8 million in the first quarter, according to IDC data. By contrast, Huawei boosted its smartphone shipments by 110 per cent to 11.7 million in the first quarter and overtook Apple as the No.2 smartphone vendor in China.
Huawei’s luxurious flagship stores display premium products ranging from smartphones to tablets, smartwatches, televisions and even electric vehicles made in partnership with Chinese automakers.“Huawei now has a long product line,” Qi said. “They need big demo areas... They will have to do it themselves because their distributors don’t have the capability to rent such a massive area.”
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