Analytics by M.Video-Eldorado: market share of Chinese smartphone brands reaches 60%

15 April 2020, Moscow, Russia. M.Video-Eldorado Group (PJSC M.Video, MOEX: MVID), Russia's largest consumer electronics retailer by revenue and part of the SAFMAR Group owned by Mikhail Gutseriev, has analysed the performance of the Russian smartphone market in Q1 2020. In the period from January to March, people in Russia bought approximately 4.5 million smartphones of Honor, Huawei, Xiaomi, Vivo, OPPO, and other brands from China, making up 60% of the total number of smartphone purchases in Q1. Honor continues to lead the market by sales volume, with Apple still No. 1 in value terms.

In Q1 2020, Russia saw purchases of around 7.5 million smartphones for a total of ca. RUB 127 bn, delivering a year-on-year growth of 12% and 15% in volume and value terms respectively. Demand in the smartphone market was supported by strong marketing efforts of retailers and producers in Q1, along with Russian consumers’ appetite for flagship models. People tend to opt for more functional and high-performance smartphones that would best handle their day-to-day tasks over the next two to three years. The average ticket totalled RUB 17,000.

China’s brands now make up 60% of sales by volume

As much as 60% of Russia’s smartphone market is represented by some 20 vendors from China. Bolstered by an improvement in consumer trust and enhanced positions in the lower and middle segments, Chinese brands are expanding their presence in higher-end phone segments. Two years ago Huawei was the only brand from China to offer premium devices with a retail price of over RUB 50,000, but today Russian consumers can choose from a variety of models by OPPO, Vivo, Xiaomi, and OnePlus.

Reprising its success of Q1 2019, Honor is once again the most popular brand by volume sales. Honor, Xiaomi, and Huawei alone accounted for as much as 50% of smartphone purchases, compared to 42% a year ago and 24% in 2018. BBK Electronics, which owns the brands of OPPO, Vivo, OnePlus, and Realme, increased its market share by volume from 0.75% to 5.5% year-on-year. Another 2% of the market in volume terms is held by ZTE smartphones.

‘M.Video-Eldorado Group outperformed the market in Q1 smartphone sales boosted by expanded product range and inventory, regular promos and efficient retail operations. At the moment, our stocks are sufficient to minimise FX impact on prices and offer good deals for popular devices. Customers can compare prices and select the right model at the websites of our retail chains and receive the purchased item via contactless courier delivery or in stores that are now operating as pick-up points or mobile phone shops,” said Vladimir Chaika, Head of Mobile at M.Video-Eldorado.

Over 70% of smartphone sales in volume terms were in the RUB 5,000–20,000 price range, where Chinese manufacturers are gaining ground by offering affordable devices that fully meet the needs of everyday use. Devices priced at above RUB 50,000 are also on an upward trend, whereas other segments are seeing lower demand.

Consumer demand revolves around five major manufacturers – Honor, Samsung, Xiaomi, Apple and Huawei, which accounted for 84% of all devices sold and 93% of the market in money terms.

Honor 8A – the best-selling smartphone

In Q1 2020, the top 5 best-selling smartphones were represented by the lower price segment, with four out of five being Honor models 8A, 7A, 10I and 8S. Samsung Galaxy A10 was also on the best-sellers list. In money terms, iPhone 11 (128 GB) was the highest-selling smartphone. Three other Apple smartphones joined the top performers: iPhone 11 (64 GB), iPhone XR (64 GB) and iPhone 11 Pro Max (256 GB), as well as the best-seller of 2019 – Samsung Galaxy A50.

15 April 2020, Moscow, Russia. M.Video-Eldorado Group (PJSC M.Video, MOEX: MVID), Russia's largest consumer electronics retailer by revenue and part of the SAFMAR Group owned by Mikhail Gutseriev, has analysed the performance of the Russian smartphone market in Q1 2020. In the period from January to March, people in Russia bought approximately 4.5 million smartphones of Honor, Huawei, Xiaomi, Vivo, OPPO, and other brands from China, making up 60% of the total number of smartphone purchases in Q1. Honor continues to lead the market by sales volume, with Apple still No. 1 in value terms.

In Q1 2020, Russia saw purchases of around 7.5 million smartphones for a total of ca. RUB 127 bn, delivering a year-on-year growth of 12% and 15% in volume and value terms respectively. Demand in the smartphone market was supported by strong marketing efforts of retailers and producers in Q1, along with Russian consumers’ appetite for flagship models. People tend to opt for more functional and high-performance smartphones that would best handle their day-to-day tasks over the next two to three years. The average ticket totalled RUB 17,000.

China’s brands now make up 60% of sales by volume

As much as 60% of Russia’s smartphone market is represented by some 20 vendors from China. Bolstered by an improvement in consumer trust and enhanced positions in the lower and middle segments, Chinese brands are expanding their presence in higher-end phone segments. Two years ago Huawei was the only brand from China to offer premium devices with a retail price of over RUB 50,000, but today Russian consumers can choose from a variety of models by OPPO, Vivo, Xiaomi, and OnePlus.

Reprising its success of Q1 2019, Honor is once again the most popular brand by volume sales. Honor, Xiaomi, and Huawei alone accounted for as much as 50% of smartphone purchases, compared to 42% a year ago and 24% in 2018. BBK Electronics, which owns the brands of OPPO, Vivo, OnePlus, and Realme, increased its market share by volume from 0.75% to 5.5% year-on-year. Another 2% of the market in volume terms is held by ZTE smartphones.

‘M.Video-Eldorado Group outperformed the market in Q1 smartphone sales boosted by expanded product range and inventory, regular promos and efficient retail operations. At the moment, our stocks are sufficient to minimise FX impact on prices and offer good deals for popular devices. Customers can compare prices and select the right model at the websites of our retail chains and receive the purchased item via contactless courier delivery or in stores that are now operating as pick-up points or mobile phone shops,” said Vladimir Chaika, Head of Mobile at M.Video-Eldorado.

Over 70% of smartphone sales in volume terms were in the RUB 5,000–20,000 price range, where Chinese manufacturers are gaining ground by offering affordable devices that fully meet the needs of everyday use. Devices priced at above RUB 50,000 are also on an upward trend, whereas other segments are seeing lower demand.

Consumer demand revolves around five major manufacturers – Honor, Samsung, Xiaomi, Apple and Huawei, which accounted for 84% of all devices sold and 93% of the market in money terms.

Honor 8A – the best-selling smartphone

In Q1 2020, the top 5 best-selling smartphones were represented by the lower price segment, with four out of five being Honor models 8A, 7A, 10I and 8S. Samsung Galaxy A10 was also on the best-sellers list. In money terms, iPhone 11 (128 GB) was the highest-selling smartphone. Three other Apple smartphones joined the top performers: iPhone 11 (64 GB), iPhone XR (64 GB) and iPhone 11 Pro Max (256 GB), as well as the best-seller of 2019 – Samsung Galaxy A50.

New arrivals of Q1 2020

The upmarket segment recorded higher sales on the release of a number of new products. In Q1 2020, the Russian market welcomed the flagship HUAWEI P40 and Mate 30 Pro, Honor View 30 Pro, OPPO FindX2 and the range of Samsung Galaxy S20 (S20, S20+, S20 Ultra). The arrival of Samsung Z Flip and Huawei Mate Xs has expanded the offering of foldable phones. In the middle price segment, several upgrades were released by the market leaders, including Samsung Galaxy A71, Honor 20 Lite, Xiaomi Redmi Note 8T, HUAWEI P40 lite and P40 lite E.

About M.Video-Eldorado Group

M.Video-Eldorado Group (PJSC M.video) is Russia’s largest consumer electronic retailer uniting the M.Video and Eldorado brands in the market for home appliances and electronics. The companies’ total annual turnover exceeds RUB 430 billion, including VAT. The M.Video-Eldorado Group is the only Russian company in the electronics retail sector whose shares are publicly traded. The company's shares are currently traded on Russia’s largest exchange platform - the Moscow Exchange (ticker: MVID).

As of 31 December 2019, the Group unites 513 stores under the M.Video brand, 506 stores under the Eldorado brand and 19 m_mobile stores in more than 250 cities across Russia. The sales area of the Group’s stores measure’s 1,455 thousand square metres with a total area of RUB 1,997 thousand square meters as of 31 December 2019.