Huawei is overhauling its retail strategy, rapidly unveiling flagship stores across China, many positioned in close proximity to Apple (AAPL.O) outlets, signaling its ambition to reclaim the throne in the world’s largest smartphone market.
Located directly opposite Apple’s Shanghai flagship store, Huawei’s newly revamped establishment spans three floors of a renowned heritage building in the bustling shopping district of the financial hub. Complete with amenities like a coffee shop and a gym, this store is emblematic of Huawei’s aggressive push into premium electronics retail.
Between December and February, Huawei launched four such flagship stores in major Chinese cities, marking a bold marketing initiative for a company that had previously relied heavily on licensed distributors. This move comes as Huawei rebounds from the impact of U.S. sanctions imposed in 2019, which severely hampered its smartphone business for four years until it could establish domestic supply chains.
Visitors like 27-year-old physiotherapist Amy Chen praise Huawei’s flagship store, noting its vibrant ambiance compared to the neighboring Apple Store. Chen visited the Shanghai store this week to switch from an iPhone 15 Pro to Huawei’s top-of-the-line Pura 70 Ultra, anticipating improved mobile reception.
While Apple maintains 47 stores across mainland China, Huawei, which only entered the flagship store scene in 2019, now boasts 11 such establishments. Analysts predict this number could surpass 20 in the near future, potentially closing the gap with Apple’s extensive retail presence.
This surge in flagship store openings contrasts sharply with 2021, when Huawei’s licensed stores faced closures due to product shortages resulting from U.S. sanctions. However, Huawei has since developed its own chips, introduced popular 5G-capable products, and ramped up efforts to recruit distributors, leading to renewed interest among retailers.
“As Huawei manages to secure large quantities of stock and offers attractive profit margins, distributors are once again eager to sell Huawei devices,” explains Ethan Qi, associate director at research firm Counterpoint. “Previously, many struggled to obtain stock, and their 4G devices faced sluggish sales.”
