Why Does Samsung Have a 2% Phone Sales Share in China?

Samsung, one of the world’s leading brands, one of the biggest markets The fact that it failed in China is, let’s face it, quite an interesting topic. Why couldn’t the brand, which is one of the pioneers of technology and innovation, find a place in this huge market?

From cultural factors to local competitive dynamics to consumer behavior Many different elements shape this situation. Let’s take a closer look at why the South Korean giant is having difficulty gaining a foothold in China.

Samsung, which once had a significant share in the Chinese market, began to struggle with the rise of local manufacturers and the changing preferences of consumers.

Chinese manufacturers, While offering high technology at affordable prices Samsung’s products remained relatively expensive. In addition, local brands’ quicker adaptation to rapidly changing consumer preferences and aggressive marketing strategies weakened Samsung’s position in the market.

Although Samsung is a pioneer in technological innovation, Chinese manufacturers rapid innovation capability and was left behind by product diversity. Local manufacturers offer customized solutions that quickly respond to consumers’ requests keeping the pulse of the market They succeeded.

For example, Samsung foldable phone While it was a big deal for us that it had just been introduced to the market, the Chinese had already started using it…

South Korean giant Samsung against flexible and fast local competitors difficulty competing and its exclusion caused it to weaken in the market. So, as you can see, China officially wanted to kick Samsung out of its market.

A series of disasters, such as the exploding Galaxy Note 7 debacle and the Chinese embargo following the THAAD crisis, have made it difficult for Samsung to operate in China.

The company warned consumers after the recall of Note 7 smartphones in 2016. tried to regain his trust However, in March 2017, there was ongoing conflict among Chinese consumers due to Seoul’s deployment of the US THAAD missile system. Your anti-Korean sentiments He couldn’t handle it.

According to market researcher Strategy Analytics, Samsung More than 400 million smartphones have been sold In China, it once had the largest share of the market at around 19%. However, this number increased with only 700,000 devices sold as of the 3rd quarter of 2018. It fell to 0.7%.

Analyst analyzing why Chinese consumers are showing less interest in Samsung smartphones as a premium brand He said that he lost his value to Huawei.

IT columnist Ham Young-min “The Chinese no longer think that Samsung offers a premium experience to consumers. Instead, they want to experience the latest Android smartphone technology.” Huawei smartphones They buy it.” He used his words.

Can we say that Huawei is on the rise among Chinese people because it is a national brand? Yes, it is, but it’s a bit surprising who is ranked #1.

Samsung in the Chinese market when deciding to reduce its presence He also took into account the reasons behind this decision and future strategies. With this decision, the brand re-evaluated its global strategy and like India and Vietnam shifted to emerging markets.

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