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Samsung rejects exchanging the market share with low-price products in China. It will continue to stand for expensive and high-quality electronic products in China.
In April, Samsung launched a series of new products – 3D TV, air-conditioner, refrigerator and washing machine in the 2010 Samsung-China Forum. Meanwhile, it published its new development strategy in China.
The new products and the new technology put Samsung in the limelight again. The introduction of the extraordinarily-low-price rolling washing machine in China aims to take away the market share of the foreign companies. Therefore, how the foreign companies, like Samsung, react towards the challenge catches many people’s eyes.
“In 2010 we plan to get into the Top 5 of the Chinese air-conditioner industry. Next year we plan to be in the Top 3. In 2012 we are going to be the runner-up or even champion of China’s air-conditioner industry.” This ambitious plan has been put forward, following which will be the intensive marketing activities.
Most foreign electronic enterprises stand for the high-end home appliance industry in China. They are attracted by the higher added value, bigger space for profit as well as better development opportunities in the high-end market. Major cities, like Beijing and Shanghai, are usually their strongholds. However, the Chinese domestic enterprises have already launched intensive and fierce counterstrikes in order to seize the market share belonging to the foreigners. In order to defend their domains, as well as to step into a bigger market, the foreign companies began to eye on the emerging market in the less important cities, or even towns in China. Samsung is one of them.
Air-conditioners Reactivated
The year of 2009 was featured with adjustment, surveys and analysis of Samsung in China’s air-conditioner market. After knowing China’s air-conditioner fairly, Samsung launched its knockout product – Garden floor standing air-conditioner – to seize the high-end standing air-conditioner market in China. The heating and cooling system – Digital Variablemulti Water 20HP – also appeared in the Forum. These activities demonstrate Samsung’s resolution to restart its air-conditioner business in China.
Ma Shunyun, marketing director of Samsung (China) Investment Co., Ltd, said that Samsung’s air-conditioner department began to operate as an independent company in May 2009. From then on the company gained great achievements. In South China, Samsung has already signed the cooperation agreements with many chain stores. At the beginning of 2010, Samsung’s air-conditioner was selected as the provider to supply products with government subsidiaries for the rural consumers in China, making Samsung the first foreign enterprise achieving this title. Pu Yingguo, general manager of commercial air-conditioner department, Samsung (China) Investment Co., Ltd, said that the company will build some display stores in some key areas. Then Samsung hopes to establish more display stores in more places in China.
In the site of the Forum, the journalist found that Samsung’s new air-conditioner is still featured with technological advantages and practicability. The new cooling device which adopts water-cooling system can save 40% of installation space compared to the old type. The new function was also adopted in the Garden air-conditioner, enabling the air-conditioner to kill the pathogen and bacteria in the air.
Never Leave High-end Market
According to the estimation made by All View Consulting, the high-end refrigerators will account for 35% to 40% of the whole refrigerator market in China in 2010. In the urban areas, such a proportion will go beyond 50%. Therefore, Samsung stuck to its high-end style without lowering the prices in spite of the financial crisis. Wei Gang, a director from Samsung, said that high end features Samsung’s products. In 2010, the Chinese government has already issued the policies to stimulate the consumption. Samsung of course has to capitalize on this opportunity to promote its sales. More attention will be diverted to the small cities and towns. It also plans to develop new refrigerators and washing machines suitable for the rural areas in China.
But Samsung doesn’t plan to exchange the market share with the low-price products. Wei Gang said that the rolling washing machine priced at 1,499 yuan (USD 219.6) will not affect Samsung’s performance in China. “We can develop a product like that, but we don’t want to. We are the advocators for the high-quality products and high-end experiences. For us, lower price doesn’t mean bigger market share.”
Fashion, technology and low carbon, those are the features of Samsung’s theory of high-end products. The higher price will bring more durable products, a more efficient energy saving and more contributions to environment.
In April, Samsung launched a series of new products – 3D TV, air-conditioner, refrigerator and washing machine in the 2010 Samsung-China Forum. Meanwhile, it published its new development strategy in China.
The new products and the new technology put Samsung in the limelight again. The introduction of the extraordinarily-low-price rolling washing machine in China aims to take away the market share of the foreign companies. Therefore, how the foreign companies, like Samsung, react towards the challenge catches many people’s eyes.
“In 2010 we plan to get into the Top 5 of the Chinese air-conditioner industry. Next year we plan to be in the Top 3. In 2012 we are going to be the runner-up or even champion of China’s air-conditioner industry.” This ambitious plan has been put forward, following which will be the intensive marketing activities.
Most foreign electronic enterprises stand for the high-end home appliance industry in China. They are attracted by the higher added value, bigger space for profit as well as better development opportunities in the high-end market. Major cities, like Beijing and Shanghai, are usually their strongholds. However, the Chinese domestic enterprises have already launched intensive and fierce counterstrikes in order to seize the market share belonging to the foreigners. In order to defend their domains, as well as to step into a bigger market, the foreign companies began to eye on the emerging market in the less important cities, or even towns in China. Samsung is one of them.
Air-conditioners Reactivated
The year of 2009 was featured with adjustment, surveys and analysis of Samsung in China’s air-conditioner market. After knowing China’s air-conditioner fairly, Samsung launched its knockout product – Garden floor standing air-conditioner – to seize the high-end standing air-conditioner market in China. The heating and cooling system – Digital Variablemulti Water 20HP – also appeared in the Forum. These activities demonstrate Samsung’s resolution to restart its air-conditioner business in China.
Ma Shunyun, marketing director of Samsung (China) Investment Co., Ltd, said that Samsung’s air-conditioner department began to operate as an independent company in May 2009. From then on the company gained great achievements. In South China, Samsung has already signed the cooperation agreements with many chain stores. At the beginning of 2010, Samsung’s air-conditioner was selected as the provider to supply products with government subsidiaries for the rural consumers in China, making Samsung the first foreign enterprise achieving this title. Pu Yingguo, general manager of commercial air-conditioner department, Samsung (China) Investment Co., Ltd, said that the company will build some display stores in some key areas. Then Samsung hopes to establish more display stores in more places in China.
In the site of the Forum, the journalist found that Samsung’s new air-conditioner is still featured with technological advantages and practicability. The new cooling device which adopts water-cooling system can save 40% of installation space compared to the old type. The new function was also adopted in the Garden air-conditioner, enabling the air-conditioner to kill the pathogen and bacteria in the air.
Never Leave High-end Market
According to the estimation made by All View Consulting, the high-end refrigerators will account for 35% to 40% of the whole refrigerator market in China in 2010. In the urban areas, such a proportion will go beyond 50%. Therefore, Samsung stuck to its high-end style without lowering the prices in spite of the financial crisis. Wei Gang, a director from Samsung, said that high end features Samsung’s products. In 2010, the Chinese government has already issued the policies to stimulate the consumption. Samsung of course has to capitalize on this opportunity to promote its sales. More attention will be diverted to the small cities and towns. It also plans to develop new refrigerators and washing machines suitable for the rural areas in China.
But Samsung doesn’t plan to exchange the market share with the low-price products. Wei Gang said that the rolling washing machine priced at 1,499 yuan (USD 219.6) will not affect Samsung’s performance in China. “We can develop a product like that, but we don’t want to. We are the advocators for the high-quality products and high-end experiences. For us, lower price doesn’t mean bigger market share.”
Fashion, technology and low carbon, those are the features of Samsung’s theory of high-end products. The higher price will bring more durable products, a more efficient energy saving and more contributions to environment.