Samsung Electronics will withdraw from the home appliance and TV sales business in the Chinese market within this year. The report quoted unnamed sources as saying that Samsung will make a final decision to stop selling home appliances and TV products in China as early as the end of April. According to sources, Samsung will retain its local production business of refrigerators, washing machines, air conditioners and other home appliances in China, and use related production bases as supply hubs for overseas markets.
The reason why the above decision was made, sources said, is that the price competitiveness of Samsung home appliances continues to decline. After all, Chinese home appliance manufacturers not only have low product prices, but also have greatly improved product quality, and their influence in the global market is constantly increasing.
Earlier, Samsung Electronics said in a statement that the company will regularly review its global business structure based on changes in the operating environment, and said that it has not yet made any final decision in response to market rumors that it may reorganize its business in China.
Some industry insiders said that Samsung has taken the initiative to reduce its front-end retail position in China. The core problem is that the price competitiveness of all categories of terminals continues to decline.
For a long time, Samsung’s entire range of mid- to high-end home appliances and TVs have been priced on the high side, and there is a scarcity of cost-effective models suitable for local families’ needs. This is compounded by insufficient after-sales outlets, lagging localization adaptation function iterations, and a lack of product optimization that fits Chinese people’s home use scenarios. It has long been separated from the core purchasing needs of mainstream consumers.
At the same time, the leading local home appliance brands in the country have emerged strongly. They have made up for their technical shortcomings in all areas, improved their quality control standards, and taken into account the three core advantages of affordable pricing, hard-core quality, and intelligent adaptation. They have seized the core traffic positions of offline supermarkets and online mainstream e-commerce in all dimensions.
