Commercial interests in indoor localization have been increasing in the past decade. The success of many applications relies at least partially on indoor localization that is expected to provide reliable indoor position information. Wi-Fi received signal strength (RSS)-based indoor localization techniques have attracted extensive attentions because Wi-Fi access points (APs) are widely deployed and we can obtain the Wi-Fi RSS measurements without extra hardware cost. In this paper, we propose a hierarchical classification-based method as a new solution to the indoor localization problem. Within the developed approach, we first adopt an improved K-Means clustering algorithm to divide the area of interest into several zones and they are allowed to overlap with one another to improve the generalization capability of the following indoor positioning process. To find the localization result, the K-Nearest Neighbor (KNN) algorithm and support vector machine (SVM) with the one-versus-one strategy are employed. The proposed method is implemented on a tablet, and its performance is evaluated in real-world environments. Experiment results reveal that the proposed method offers an improvement of 1.4% to 3.2% in terms of position classification accuracy and a reduction of 10% to 22% in terms of average positioning error compared with several benchmark methods.