Huawei, the Chinese tech giant, is making bold moves to reclaim its dominance in the premium electronics market in China by revamping its retail strategy and aggressively opening flagship stores. Positioned strategically, some of these stores are located just steps away from Apple's iconic flagship stores, signaling Huawei's intent to compete head-to-head with its American counterpart in the world's largest smartphone market.
One notable example of Huawei's aggressive retail expansion is its recently renovated flagship store in Shanghai, situated directly opposite Apple's flagship store. Spanning three floors of a prominent heritage building in Shanghai's bustling financial district, Huawei's flagship store offers customers a unique shopping experience complete with amenities like a coffee shop and a gym.
In a swift marketing blitz, Huawei opened four such flagship stores in major Chinese cities between December and February, signaling a significant shift from its previous reliance on licensed distributors. This strategic move comes as Huawei continues to rebound from the U.S. sanctions imposed in 2019, which had severely impacted its smartphone business for several years.
The revamped Huawei stores are already making an impression on consumers, with many noting the store's inviting ambiance and bright interior compared to Apple's stores. This sentiment is echoed by Amy Chen, a physiotherapist who recently visited the Shanghai store to switch to Huawei's top-end smartphone, the Pura 70 Ultra, from her iPhone 15 Pro.
While Apple currently boasts 47 stores across mainland China, Huawei has swiftly expanded its footprint, with 11 flagship stores already in operation. Industry experts predict that Huawei's aggressive retail expansion could see it surpassing Apple's store count in China in the near future.
This retail overhaul marks a significant turnaround for Huawei, which faced product shortages and store closures in 2021 due to the impact of U.S. sanctions. With its revamped retail strategy and a renewed focus on the Chinese market, Huawei aims to reclaim its position as a leader in the premium electronics segment and challenge Apple's dominance in China's competitive consumer tech landscape.