Huawei plans 40,000 new stores in two years April 24, 2015

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Chinese phone maker Huawei plans to more than double its global store network from 30,000 to 70,000 by 2017.
Huawei sees building its retail network is the key to selling more mid-range and high-end smartphones, taking on Apple and Samsung headon.
More than half its current retail outlets are in China, which means the brand so far has only a modest presence and brand awareness internationally.
By definition, Huawei’s stores will range from stand alone outlets to concessions and “display zones” where its phones were demonstrated for sale.
Glory Zhang, chief marketing officer for Huawei’s consumer business group, says the company plans to launch more ‘high-end’ smartphones in international markets by the end of this year.
Huawei is in the midst of a rapid growth phase. In 2013 it shipped 52 million smartphones, a figure dwarfed last year by 75 million, which made it the world’s third largest phone manufacturer. It is on track to ship well over 100,000 handsets in 2015.
Within its own product range, high end units comprised just five per cent of its sales last year, but in the first quarter of 2015, they accounted for 34 per cent of sales.
Its newest showcase model is the P8, with a sleek metal body, (pictured above).
Besides its retail network ambitions, Huawei has also revealed it plans to create a global service center network with urban customers no more than five kilometres from a repair shop.
Zhang is confident about the brand’s international ambitions.
“We’ve done this for a long time. We feel deeply that it’s easy to make a phone, but hard to make a good one.”
Questions & Answers
Q.What is Huawei's main objective for significantly expanding its retail presence?
What is Huawei's main objective for significantly expanding its retail presence?
Huawei believes that building its retail network is crucial for increasing sales of its mid-range and high-end smartphones. This strategy aims to help the company compete directly with established brands like Apple and Samsung in the market.
Q.How many new retail outlets does Huawei intend to open by 2017?
How many new retail outlets does Huawei intend to open by 2017?
Huawei plans to add 40,000 new stores to its global network by 2017. This expansion will more than double its current 30,000 outlets, bringing the total to 70,000 retail locations worldwide.
Q.What proportion of Huawei's current retail outlets are located in China?
What proportion of Huawei's current retail outlets are located in China?
More than half of Huawei's existing retail outlets are currently situated in China. This indicates that the brand has a relatively modest international presence and brand awareness outside its home market.
Q.What changes have been observed in the sales proportion of Huawei's high-end smartphones recently?
What changes have been observed in the sales proportion of Huawei's high-end smartphones recently?
Last year, high-end units represented just five per cent of Huawei's sales within its product range. However, in the first quarter of 2015, these premium devices accounted for 34 per cent of total sales.
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