Samsung sets sights on emerging
Samsung Electronics is targeting emerging markets such as Southeast Asia, China and India with cheaper mobile phones and devices, while also debuting innovative premium products to serve high-end markets, including Samsung Pay in Thailand.
"Samsung has faced difficult times during the last few years due to economic problems. But the company has now recovered and is ready to go with some new strategies," a source said.
South Korea’s largest mobile phone maker plans to diversify its businesses both portfolio-wise and geographically.
The lower-priced models are expected to gain a bigger share in the mass market outside.
Some models such as the Galaxy On have been introduced in India and China at a price of US$200 or about Bt6,000.
Monthly sales are already running at one million units in India and the company hopes for a similar response in China.
Southeast Asia is the next place to get a cheaper model. However, the launch of products in each country will depend on telecommunication infrastructure, the market situation, market size and demand, and readiness of local operators.
Samsung will cut back the number of models it offers, as its study found that there are too many models in the market and that causes customer confusion. Model selection will be made at the local office level.
"From now on, customers will see only two premium products each year but more models for the mass market," the source said.
For the upper market, the Galaxy S7 will come out this quarter, while its new tablet will go to the B2B market.
In smartphones, Samsung claims that it is No 1 in the world, No 2 in the United States, Australia and Europe and No 5 in China.
Samsung dominates close to 80 per cent of the domestic market, but more than 90 per cent of its sales comes from abroad. The company then realised that overseas markets still have more room to grow and that high sales could be maintained.
Samsung rolled out the Gears2 Watch priced at $350 in the domestic and international markets last month. The smart watch is set to beat the Apple Watch with a slightly cheaper price. Two types are on the market – sport and classic.
Its strategy for the global IT market centres on the Internet of Things, which is a worldwide IT concept that will help humans to connect with their workplace, home and lifestyles.
For the Thai market, besides mobile phones and devices, Samsung wants to unveil Samsung Pay soon. It is now in talks with the Thai government.
Samsung Pay is popular in South Korea. The digital valet is already available in markets such as the US, South Africa and Europe.
