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Home Mobile Accessories

Samsung to Try Out Xiaomi-Style Online Marketing

by Pang Tun Yau
March 24, 2015
Leaked: Specifications of the Samsung Galaxy S4 mini, Zoom and Active
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Samsung-Logo_31

In a bid to resurrect its flailing profits, Samsung is looking at some drastic changes in the way it markets its products. One such idea that may come into fruition this year is online marketing, an area which has been a strong point for almost all of Samsung’s competitors.

Samsung relies upon its burgeoning network of distributors and retailers for sales of its products. It is a traditional model that has worked wonders for the South Korean giants, propelling the company to where it is today. Consumers can touch and feel Samsung mobile phones in virtually any mall, and its physical presence leaves the impression of a reputable brand.

samsung-crowd-line

That being said, this network also adds another layer of costs that are eventually borne by the consumer. And, with virtually no online marketing presence, the company is lagging very far behind companies such as Apple, which sells its products via carefully-selected physical retailers as well as its official online store, and Xiaomi, the epitome of a new online-only marketing model.

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As such, Samsung is said to be actively looking into exploring an online marketing alternative for some of its markets in Asia Pacific, where some of its products will be made available for sale online. This obviously will allow the company to sell its products at a lower price since the retailer network is not involved, which will allow the products to compete more aggressively against the Chinese smartphones which are employing this same business practice to offer spectacularly low-priced products.

samsung-galaxy-alpha-launch-malaysia-4

The Korea Times noted, however, that this will not be applied to all of its products in all countries. Removing the retailer network will strain business relationships, and affect tie-ups with local carriers which offer steep discounts for devices bundled with contract. But with the company losing vast amounts of market share and profits that are quickly dropping, it must explore new methods of resurrecting the brand.

Samsung used to be known as the company that identifies trends early on, and adapts its products to meet them. It was a strategy that worked so well in the past, before Chinese companies began taking cues from Samsung and beating it at its own game. Perhaps Samsung can do the same the other way around?

(Source: The Korea Times via SamMobile)

Tags: Samsungsamsung mobile
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