[Global Science and Technology Report] According to Korea news1 news agency on August 2, on the 1st, Samsung Electronics announced that Samsung will close its seven sales outlets in China. They are located in North China, East China, South China, Central China, Southwest, and Northwest China respectively. , Northeast and other places. According to the analysis, Samsung decided to make this decision because sales of home appliances such as TVs and refrigerators were good, but sales of the smart phones, which accounted for the heaviest sales, continued to decline.
Samsung said that this decision is not intended to abandon the sales market in China. Instead, it integrates decentralized distribution points into one to increase business efficiency and reduce expenditures. The seven sales staff will be re-arranged and will not be fired.
According to reports, Samsung Electronics' development in the Chinese market is struggling. The market for home appliances such as televisions, refrigerators and washing machines has long lost its vitality. The market share of smartphones has continued to decline in recent years. The survey results of market research organizations show that in 2016 Samsung and LG’s market share in the Chinese home appliance market was less than 5%.
In order to recover the share of smartphones in the Chinese market, Samsung Electronics introduced the Galaxy S8 series in 2017, but with little success. On May 25, the Galaxy S8 series sold about 300,000 units in China, and the sales situation was not optimistic. In the second quarter of this year, Samsung Electronics’ smartphone market share in China was only 3%, down 4% year-on-year and dropping to sixth place.
The related personnel of Samsung Electronics stated that China is a large country with 56 ethnic groups and 1.4 billion people. The geographical characteristics are very obvious. The practice of shutting down seven sales outlets actually has to abandon part of the Chinese market. Due to the lack of deep understanding and analysis of consumers, it is still a long way to go before resuming market share. (Internship Compilation: Zhang Jiamin Reviewer: Li Tingting)
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