Samsung is one of the biggest companies in India. Most of the people in India think that Samsung is an Indian company and that is a compliment for the marketing team as the company has managed to be as Indian as it could be. This is based on years of hard work and trust gained by the people, it is not only smartphones but the company has gained a lot of attraction for all of its products over the years. People feel at home with Samsung products and there are not many companies which have this status.
However, India is a country that believes in prices more than products and that is the reason we see a change and an unpredictability in the Indian market. The Chinese companies have managed to hit that nerve quite well. Companies like Xiaomi, OnePlus along with Vivo and Oppo have managed to break Samsung’s rule in India. The company is trying to fight back but against the Chinese wave but it is getting tougher and tougher as time passes.
That being said, Samsung’s ship is slowing down and the Chinese waves are hitting them harder and harder. This is where the South Korean company needs to pull up its socks and cut through the waves as fast as possible. OnePlus, with a bit of social media campaigning and online channels and with INR 30,000 plus phones have challenged the entire range of Samsung’s premium smartphones. OnePlus launches only one phone every year and another one after three months but still manages to eat up Samsung market.
It is not only the phones but even the white goods market is slipping away from Samsung’s hand. Xiaomi is coming out with their home appliances and the pricing is supposed to be aggressive which will cut the work out for Samsung as well. However, Samsung’s mentality of profit and margin is something that holds them back. The company is way ahead in terms of money, contacts and retail operations in India, even then it is falling behind because of the free-flowing Chinese companies.
Samsung led the Indian market for 24 quarters straight before 2017. The revenue of Samsung in 2015-16 was about INR 47, 430 Cr while the profits that year sailed past INR 3,000 Cr. In 2016-17, the revenue rose to INR 54, 531 Cr and the profits hit a new record of INR 4,156 Cr. A year later, in 2017-18, the revenue soared up to INR 59, 370 Cr while the profits crawled down to INR 3,712 Cr. It is then when Xiaomi, OnePlus and other Chinese companies stepped up their game and it became a mountain too high for Samsung. This is where it lost its battle, aggressive marketing, and pricing.
(The above numbers were presented by Tofler)