[Asia Economy Reporter Hwang Sumi] It has been reported that Samsung Electronics has started distributing products through parallel imports in Russia, where smartphone sales have recently been suspended.
According to global market research firm Counterpoint Research on the 3rd, Russia has recently begun full-scale distribution of parallel imported Samsung smartphones. Parallel import refers to a system where products are imported and sold by individuals or general companies rather than the official importers of the manufacturer. In principle, it is allowed as long as it does not harm the trademark's inherent functions such as source indication and quality assurance.
This measure was prepared in response to international sanctions against Russia following the invasion of Ukraine. Major manufacturers such as Samsung Electronics and Apple have stopped selling products locally, causing a shortage of smartphone inventory. There is also growing dissatisfaction among Russians who want to buy new Samsung smartphones that are not made in China.
However, after Russia's invasion of Ukraine, Apple stopped selling iPhones in the Russian market. Samsung Electronics also recently temporarily suspended product shipments to Russia due to geopolitical reasons.
The void left by these companies has been filled by China. Recently, the market share of Chinese smartphones in Russia has rapidly expanded. According to Chinese media Phoenix Technology on the 29th of last month, Russia's largest electronics retailer M.Video Eldorado announced that two-thirds of all new sales from April to June in Russia were occupied by Chinese brands.
According to M.Video Eldorado data, the market share of Chinese brands in Russia in the second quarter of this year is about 65%. The market share is expected to reach 70% in June. In particular, Xiaomi ranked first in smartphone sales in Russia in the second quarter. Xiaomi's market share in Russia reached 30.6%. Realme's share also increased from 8.3% to 13%.
However, as dissatisfaction among Russians wanting to buy Samsung products grew, the Russian government promoted a parallel import plan. On the 22nd of last month, Russia passed such a bill and announced a list of parallel import items including Samsung Electronics smartphones and Apple iPhone series. Accordingly, Russia can legally parallel import some overseas products without the consent of the copyright holders.
However, after-sales service (A/S) through official service centers is practically impossible for parallel imported products. Although private companies can repair them, procuring parts may be difficult. Exchanges or refunds are also difficult. The risk of counterfeit products is also raised as an issue because parallel imported products do not include warranties. In fact, some unverified small-scale merchants have been caught selling counterfeit products as genuine ones.
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