November is here and just before the onset of winter, Indian is feeling the warmth of the festive season. It is huge in India and along with the people, the companies are also enjoying the joyous mood. People are purchasing a lot due to the offers and discounts everywhere.
Samsung is one of the largest technology-based companies in the world. They are the second largest home appliance brand in India. Their reputation has been the result of consistent product quality, huge distribution channels and satisfactory after-sales services.
However, a recent trend shows that the Indian market is ever so slightly leaning towards the non-traditional companies in the electronics sector. Companies such as Xiaomi, TCL, Haier and Thomson are performing really well in the entry level and even mid-range products. These are the segments where the companies such as Samsung, LG and Sony used to dominate. The shift among the people’s perception can be clearly seen, as the newer companies are manufacturing equally good quality products and selling them at fraction of the costs as compared to the renowned brands. The online market is another reason for the downfall of the traditional companies. The newer companies such as Thomson and Xiaomi focuses a lot on the online channels, which results in easier, faster and cheaper delivery of the electronic products. Hence, people are attracted towards the value for money products.
Samsung, which is a giant in the electronics sector was terrified of these new developments and was also facing a steep downfall for the last couple of years. This festive season starting from Dushehra, their strategy has been to regain the lost market share and make up for the past losses. In a recent meeting with the owner of a large electronic store in the city, it was revealed that the other established brands have been hit due to Samsung’s aggressive policies for this festive season. Samsung is giving around 25 percent instant cashback on a range of products and an additional 15 percent cashback on purchases made through HDFC Bank, Axis Bank, and ICICI Bank credit and debit cards.
A 32 inch Samsung LED used to cost around INR 17,500, but that cost has come down to around INR 16,000. In addition to this the company is giving more cashbacks and offers as discussed above. The final price that the customers are paying is very less as compared to the re Diwali period. This is the reason that other major brands have been badly hit especially in the LED TV segment. India is not a brand cautious market. It hardly matters to the consumers which brand they are purchasing as long as they are getting good quality value for money products. ‘Value for Money’ is the key towards growth in the Indian market. Samsung is trying to regain its dominance in India with their aggressive discounts and other strategy.