According to media reports, Samsung will sell its smartphones in India, Vietnam and China based on Online-only model made popular by Xiaomi. These countries, high on their populous are seen to be a booming market for e-commerce. Xiaomi has been very successful in selling their devices adopting the same strategy, hence Samsung decided to follow suite, believe the contractors and components suppliers of the company. They also feel that this strategy won’t be possibly applied in the western markets.
An insider quoted, “If Samsung sells more of its smartphones via its online channels, then it can save a huge amount in supply chain costs. This is also good for consumers as Samsung may provide handsets at much lower rates. Xiaomi only sells its handsets via its official websites. Samsung management believes this strategy was one reason that helped the Chinese smartphone producer improve its bottom line in such a short time.”
In the last one year, it has come out distinctively clear that the company did need a new strategy, as it had to go on ground with competition from its Android family rivals. These rivals have been sharing Samsung’s market share, they’re up and booming, with new brands coming up constantly.
The company’s global sale profits were also seen to go down last year. “As Samsung is shifting its focus towards budget handsets in Asia, it intends to implement the direct online sales marketing strategy in selected countries. This strategy will be effective for Samsung to up its share at less cost,” the source said in the report.
Last 12-18 months have been very tough for Samsung as they have lost big chunk of their market share in India and other countries, especially due to surge of Chinese smartphones that offer good specifications at competitive prices.
The company is set to get on ground to compete with low-cost brands, we hope it is considering the fact that it will have to match hardware and price, it could be quite a gamble if turns wrong. Samsung has declined to comment on the matter.
As per the day’s data, Xiaomi has a strong dominance over the online market. Samsung takes this as a probable chance to get down and battle it out virtually.
If this strategy shift adds on, or risks its current market strata will be an interesting watch!
[…] According to multiple media reports, Samsung will sell its smartphones in India, Vietnam and China based on Online-only model made popular by Xiaomi. […]