The next major destination for the smartphone war is the Indian subcontinent. Samsung is in the leader positon with 42% of total smartphones sales while the second highest shareholder is the local micromax. But all is not sunshine in the India for Samsung. It’s smartphone sales are steadily declining and profit are eroding as the low cost manufacturers such as xaomi, ASUS and Motorola take over the market.
To combat this hostile takeover, Samsung is revamping its sales strategy in India. Samsung is a reputable brand in India and its phones have presence almost everywhere. While the brick and mortar sales account for most of the revenue for Samsung, the e-commerce market is booming like never before and Samsung doesn’t want to let the rival like Motorola and xaomi to catch it off guard.
Xaomi recently sold a million phone in less than a day in its strategic online flash sale. To combat this, Samsung want to establish an e-commerce portal of its own devices to serve the consumers better. Samsung is keenly evaluating the online strategy and has also formed a group that can help it increase the online sales at its headquarters.
“For us the consumer is the key. Where the consumer would want us, we would be there and would be offering right kind of products at right price.” Said Samsung head for India.
Government of India has started a “make in India” initiative where the products that have been manufactured in Indian subcontinent will get a tax reduction and this decreases the overall price of the smartphone. You must know that the electronic goods in India are very expensive owing to its taxation policies. This decrease in the overall price combined with the online sales will help Samsung offer devices at lower cost. Avoiding the maintenance and transportation charges to brick and mortar store are a plus.
Looks like Samsung is going to war with other manufacturers in India.
