Japan is one of those markets. Samsung has been facing tough competition from Chinese TV manufacturers in Japan, where its market share now sits in the single-digits, compared to double-digit shares in most major markets.
Chinese TV markets offering options at half the price
The Nikkei reports that Chinese manufacturers account for over half of all TV sales volume in Japan. This is said to be one of the reasons why Samsung is finding it difficult to grow its TV market share in the country.
Another reason why Samsung is lagging behind in this market is that it formally exited Japan's TV and home appliance segment way back in 2007. There have been some rumors about Samsung potentially returning to Japan with these products, but nothing concrete has materialized.
Consumers in Japan have historically preferred domestic brands, and while local behemoths like Sony exist, Chinese TV makers have been able to capture the hearts, minds, and yen of local customers through aggressive pricing.
This is straight out of the playbook that Chinese companies follow in most industries. They undercut the incumbents through lower prices. In Japan, Chinese TV makers are providing options that cost nearly half as much as alternatives from other brands. Price conscious customers ultimately gravitate towards the more affordable options.
Samsung's cross-town rival LG has been trying to capture the attention of Japanese customers through premium OLED and very large screen TVs, but it also faces tough competition from Chinese brands.
