Samsung is well renowned for its outstanding Consumer Electronics and Home Appliance Products across the globe. With astounding technology and innovation, Samsung has become of the largest technology companies by revenue with a market capitalization of US$325.9 billion. Though it provides a wide range of gadgets and appliances, it is facing stiff competition from Chinese technology majors Haier and TCL.
Haier, the white good tech giant – is expecting to generate a revenue of over ₹2,000 crores by the end of the year and are also predicting the growth by 30-40% by 2020 in India. Since India comprises a significant number of middle- class consumers, it is inevitable for Multinational Corporations to not to invest in the Indian market. By 2025 it is predicted that with the increase in disposable income will ultimately turn India into the world’s 5th largest consumer. Haier and TCL are determined to exuviate the poor reputation of Chinese goods by creating durable and reliable consumer products with a flexible price range of the commodity.
While being in the market for a significant amount of time, newly emerging companies have knocked off Samsung from the top. It is crucial to understand that the business market is constantly evolving and is exposed to change, Chinese companies have been keeping abreast with these aspects of change and have identified the demand of consumers. Keeping into account the structure of the Indian market and consumer demand and preferences, these companies have manufactured appliances within an affordable price range while incorporating excellent and latest features.
Through advancing technology and being mindful of the feedbacks of the consumers, Haier and TCL have started to dominate the market worldwide and especially India. As a result, Samsung now is being slowly taken over by the Chinese majors. For instance, Chinese handsets and smart home appliances are cost-efficient and fulfill the criteria of the consumer market. Even Samsung smartphones are being challenged by the controversial Huawei in terms of total sales after beating Apple to take the second position worldwide.
However, Samsung’s profit-driven attitude has failed to deliver on meeting the expectation of its consumers. Furthermore, the chairman of Indian Cellular and Electronics Association (ICEA), Pankaj Mohindroo, stated, “The Indian mobile phone market has gone through tremendous consolidation. Samsung’s value market share has dropped from over 40-45% in 2013-14 to current levels of 20-25%.” Samsung recently announced that it is going to lay off 1,000 of its employees to reduce its cost and to realign the structure according to the realities of the market. Taking into consideration the ever-changing nature of the consumer and through thorough research and study, while devising innovative ideas and technology, Samsung can reclaim its glory in the near future.
-Evelyn Pamela Tete