260 million units! Samsung lost the Chinese market and still won the world's first place, and the underlying reasons are worth pondering

In the past, Samsung phones were still very common, but in recent years, have big guys noticed that we are all struggling to buy domestically produced Huawei, Xiaomi, vivo, Oppo, or foreign Apple when buying phones? Almost few people consider Samsung.Is it because Samsung is no longer viable and has gradually faded out of the market? At first, I thought the same thing

In the past, Samsung phones were still very common, but in recent years, have big guys noticed that we are all struggling to buy domestically produced Huawei, Xiaomi, vivo, Oppo, or foreign Apple when buying phones? Almost few people consider Samsung.

Is it because Samsung is no longer viable and has gradually faded out of the market? At first, I thought the same thing. But the fact is, Samsung has only faded out of the Chinese market. It is still the world's number one and has been the number one for ten consecutive years.

Last year, Samsung's smartphone shipments reached 260 million units, accounting for 21.6% of the global market shareNext are the familiar apples, Xiaomi, Oppo, and vivo.

How did Samsung exit the huge Chinese market?

The most direct trigger for Samsung's loss in the Chinese market was in 2016Samsung Note 7 Explosion835Samsung Note 7 Explosion

Nevertheless, despite the doubts and concerns of Chinese consumers, Samsung still insists on releasing the Samsung Note 7 in China. On the second day of the new device's release in China, Samsung immediately announced a global recall of all Samsung Note 7 phones, excluding the Chinese market.

The second day after its release in China, Samsung recalled new phones worldwide, except for China. It is not difficult to doubt Samsung's motivation to persist in releasing Note 7 in China! As soon as this news was released, Chinese consumers were about to explode in anger, and the General Administration of Quality Supervision, Inspection, and Quarantine of China immediately arranged for Samsung. Under multiple pressures, Samsung symbolically recalled 1858 Samsung Note 7 phones in China.

Although some new machines have been recalled, Samsung still insists that there are no issues with the batch of new machines released in China.

Of course, even those who don't understand can still figure out how the same batch of phones can only be released in China without any problem, it must be deceiving people.

Samsung Note 7 Explosion7Samsung Note 7 Explosion

The next scene was even more distressing. At the Samsung China ordering meeting in Shijiazhuang, Samsung executives refused to lower their noble heads to apologize to Chinese consumers, forcing Chinese employees to kneel down and apologize. Those executives who did not kneel were forcefully pushed down by them, asking Chinese people to apologize on their behalf, which was unimaginable.

The behavior of Samsung executives has completely aroused anger and disgust among Chinese people. Since then, Samsung has lost popularity in China, and Samsung phones are not the only ones in the world.

Samsung's loss of the Chinese market is not only due to their arrogance, but also mainly due to the gradual rise of many local brands as their industrial strength improves, ushering in a golden era in the mobile phone market.

Brands such as Xiaomi, Huawei, and Oppo have gradually become stronger, and Samsung's mid to low end mobile phone market has lost its former glory. The high-end market cannot compete with Apple, so Samsung has faded out in China.

Another aspect is that Samsung has never made the Chinese market a key focus for mobile phone sales, which means they are not optimistic about the Chinese market and do not promote sales in our region, so naturally they will not form a large market in China.

Their own internal reason is that they did not prioritize China as their sales focus, nor did they take Chinese consumers seriously. Adopting double standards has chilled the hearts of Chinese people. The external reason is that our own industry is gradually becoming stronger and can meet our own mobile phone needs. Samsung has neither popular support nor market advantage in China, and it will be a matter of time before we lose such a huge market.

Even without the presence of the Chinese market, Samsung can still achieve global first place. How did Samsung achieve such a remarkable feat?

Samsung can still hold the top spot for ten years without the Chinese market, indicating that Samsung still has a strong enough "back" support. Being able to sell so many phones is nothing more than being able to build and sell them. Let's start from these two aspects, and we will definitely be able to uproot Samsung's secret of being the world's number one for ten years.

The first point is also the fundamental reason why Samsung smartphones remain invincible. Samsung has a complete industry chain system and can basically achieve self-sufficiency. Many countries manufacturing electronic products such as mobile phones require importing parts from around the world, completing the main framework themselves, and then assembling them into a complete mobile phone.

Samsung is different from this. They have a complete and rich industry chain system, and almost all core components can be manufactured by themselves, except for the operating system. For example, Samsung has its own Orion chip, OLED screen, NAND flash memory, CMOS sensor, and so on, which saves time on imports and is not easily "stuck" by others.

Secondly, Samsung has a very complete and mature sales system, especially a very strong offline sales system.

They have spent more than a decade developing their own sales channels both domestically and internationally, with Samsung's retail stores, official authorized service centers, and customer service and after-sales centers in various countries. Samsung's position in the world can be compared to Huawei's current position in China, and even stronger.

On the one hand, Samsung has reduced costs and increased profit margins through its own manufacturing. On the other hand, it has shortened the construction period, enabled fast and efficient shipment, and opened up a completely their own sales channel. Therefore, even without the Chinese market, they can still do well.

But if we reopen our country's market, Samsung's sales will greatly increase. This can only be a fantasy now, because we also have our own brand, which is also quite cost-effective. Who would be willing to buy from outside!

Thirdly, the Samsung brand has a great influence and has a good global response.

In the era of feature computers, Samsung once stood shoulder to shoulder with the popular Nokia and established a good reputation in many regions around the world. At that time, Samsung gained the trust of many countries with its high-end performance and high-quality after-sales service - except for us who were abandoned by Samsung.

Although many new brands emerged later, with good quality, performance, appearance, and experience, Samsung has also been a popular brand in the market for decades, and people believe it is guaranteed, so Samsung's global sales are very high.

In addition, with a large global population and different consumption views from the East, Western countries tend to enjoy themselves in a timely manner and consume heavily. Many Western countries are developed countries, and they not only have high wages, but also many government subsidies. They do not have the pressure to buy a house, so many Westerners have plenty of money and are very willing to purchase electronic products such as mobile phones and computers.

Overall, Samsung's ability to sell globally relies on their strong strength and appropriate business practices. China is relatively large compared to us, but relatively small compared to the world. Therefore, even without the Chinese market, Samsung remains the world's number one.

Is there anything worth learning from Samsung's development process?

The most noteworthy thing must be Samsung's independent research and development capabilities. One of the reasons why Samsung is so powerful just now is that they can manufacture many important mobile phone components themselves, such as very important chips.

Huawei almost couldn't get up before because there was a problem with the chip, which was "stuck in the neck" by the US side and dealt a significant blow to Huawei. If we have strength as strong as Samsung, we don't have to be constrained by others.

We also need to pay attention to Samsung's "high-quality" after-sales service, just like Samsung is responsible for other countries. Once there is a problem with the phone, it will be immediately recalled and any after-sales problems will be resolved immediately. Instead of being like Samsung to our country, the ironclad facts are already present and openly denied. Selling this time does not mean that we can also sell next time. Building a current bridge with customers is the long-term solution in the business world.

The sales channels cannot be relaxed either. Samsung's offline sales system is very strong, so we can actually change with the times. In this era of the Internet, people are mostly willing to buy things online to save time and costs, whether it is small daily necessities or large household appliances. Therefore, creating a completely domestic and international sales channel that belongs to us is of great benefit.

The final point is to "tailor to local conditions". Cities are divided into first, second, and third tier cities. Therefore, selling mobile phones can be utilized to accurately launch electronic products such as mobile phones that meet the consumption levels of different regions and cities. This may increase overall sales, and we can also adopt this method for different countries.

How competitive are our major domestic brands compared to Samsung?

At present, Samsung's mid to low end product line is completely uncompetitive in front of our domestic mobile phones, because Samsung is a foreign brand with high tax points, and Samsung is a multinational company with very high operating costs, which makes Samsung phones themselves not cheap.With similar performance, Samsung cannot compete with Chinese brands such as vivo, Xiaomi, and Oppo in terms of price.

Some users who have used Samsung S22+have discussed their experience, and they feel that the system operation logic is cumbersome, the experience is not very good, and even it takes too long to adapt. Our major domestic brands do not have this pain point, as many elderly people can learn. It may not be possible to focus on Samsung S22+, which is also one reason why Samsung's competitiveness is not as good as that of major domestic brands.

Overall, our major domestic brands are actually very competitive with Samsung. Just relying on Samsung to handle the Note 7 explosion has completely chilled the hearts of the Chinese people, let alone our country's increasing strength in technology. With our own efforts, we have a greater sense of honor and security.

Although Samsung's influence has always been strong for foreign countries, if we work harder, whether in manufacturing or sales, in the near future, our major domestic brands will also compete for a place internationally.


Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])