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Chinese electronics giant Xiaomi’s sister company Zmi has tapped into the Korean market by partnering with local online retail site 11st.co.kr.
The online auction and retail site said Monday that it signed a deal with Zmi, offering exclusive retail channels for the Chinese company. This came months after the retail giant signed a memorandum of understanding with Xiaomi last November.
Xiaomi and Zmi have been at the forefront of the “Made in China” sensation here, selling 3,000 batteries in April. The Xiaomi subsidiary also held a special promotion event for its batteries and fans last month, and more than 10,000 have been sold in three days through the retail site.
An 11st official attributed its success to its price competitiveness.
“The Xiaomi and Zmi products are extremely cost effective,” said the official. “Their performance does not lag behind that of its local rivals, but the price is much lower than them.”
In particular, Xiaomi’s weighing machine, Mi Scale, gained huge popularity last year for its cost-effective features including its connectivity with other Xiaomi products such as Mi Band, a smart band which allows users to check their body condition.
“The latest deal led us to become a frontrunner in selling Chinese IT products,” said Lee Chi-hun, digital business department chief for the retail site, in a statement.
He added the company will keep helping Xiaomi affiliates and partnering companies to penetrate into the Korean market.
Zmi is best known for producing Xiaomi’s portable battery packs. The latest deal will allow 11st to sell Zmi’s light-emitting diode (LED) lamps and electric fans and its own battery packs. The retail giant added it will also introduce Zmi’s new products including multi-tabs and cables through its site.
“11st has established a strong foothold in the nation’s retail channel, often dubbed as a representative of Korea’s e-commerce market,” said Wenyuan Huang, co-founder of Zmi. “We are pleased to establish an official retail channel through which Korean customers can buy our products.”
Meanwhile, local smartphone makers have been strengthening their budget phone lineups in their bid to compete with Chinese super-cheap smartphones. In particular, the Chinese telecom giant’s latest budget phone, Y6, has sold more than 20,000 units in less than a month after launching here. Last week, LG Electronics unveiled its new budget smartphone K10 with a price tag of 275,000 won.
