Sneaking back: Samsung, Xiaomi, Acer, and other electronics giants quietly return to Russian market

Tech giants re-enter Russian Market: Samsung, Xiaomi, Acer’s stealthy comeback
Tech giants re-enter Russian Market: Samsung, Xiaomi, Acer’s stealthy comeback

Electronics manufacturers like Honor, Xiaomi, Samsung, and Acer, which had paused their marketing efforts in Russia due to Russian invasion of Ukraine, have now reinstated or even increased their advertising budgets beyond their 2021 figures, the pro-Kremlin news outlet Kommersant reported on March 11. 

These companies are using a scheme where the budget is managed by a retailer or a distributor, according to Kommersant.

Read also: Global companies slow to exit Russian market despite continued invasion

Despite ramping up promotional campaigns, electronics brands may struggle to keep their market share due to supply inconsistencies. Second-tier Chinese firms, known for their regular tech imports, are intensifying their marketing efforts.

Read also: stops working with another 200 companies operating in Russia, encourages employees to follow

Foreign electronics suppliers that scaled back or even completely halted their official deliveries to the country in 2022 have revived their advertising activities in the Russian market in 2023 to 65-100% of the mentions they had in 2021, according to the Russian analytics firm TelecomDaily.

Notable brands like Honor, Xiaomi, Samsung, and Acer are part of this trend, with one company insider noting a significant focus on blogger collaborations. These companies halted all advertising in Russia in 2022, while new entrants like Tecno and Infinix saw a 60% marketing increase.

Read also: How Kyrgyzstan and other Central Asian countries help Russia import sanctioned goods

A source among the top managers of one of Russia’s large retail chains explained that due to sanctions, foreign electronics manufacturers are using trade marketing. This means that companies transfer the advertising budget and the right to manage the promotion strategy entirely to third parties, primarily marketplaces, retailers, and distributors.

A smartphone industry source confirmed that these companies are channeling their advertising through retailers and marketplaces. Wildberries, Russia’s premier marketplace, reported a 6.6-fold surge in electronics advertising in 2023 compared to the previous year.

It was reported that Samsung halted the supply of smartphones and chips to Russia in March 2022.

Ukraine’s National Agency on Corruption Prevention (NACP) has declared China’s Xiaomi Corporation an international sponsor of war in 2023.

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Read the original article on The New Voice of Ukraine