China is one of the most lucrative markets in the world. Samsung's mobile devices used to do very well there but it wasn't able to maintain its market share. The company came under intense competition from local companies who were able to poach customers.
The company never really gave up on China even when it wasn't doing too well in the market. It's once again trying to grab a bigger piece of the pie. Samsung has formed a new team that will be dedicated to improving its business in China.
Samsung is trying to revive its fortunes in China again
Korean media is reporting that Samsung has formed a dedicated team to breathe new life in its business in China. The company's Vice Chairman Lee Jae-yong is also expected to visit Beijing next month to improve Samsung's relationships with key stakeholders in the country.
Samsung mobile and home appliance businesses have both seen a slump in China due to competition from local companies. Between 2013 and 2014, Samsung accounted for over 20% of the Chinese smartphone market. By 2019, its market share had fallen below 1% without much improvement ever since.
The new China Business Innovation Team at Samsung has the singular purpose of working to improve the fortunes of Samsung's mobile and appliance business in China. The team will report directly to Han Jong-hee, the boss of the newly merged DX business unit at Samsung that oversees both mobile devices and home appliances.
This move suggests that Han is personally taking an interest in reviving Samsung's fortunes in China. The country offers incredible opportunities but Samsung still needs to navigate the competition, not to mention the geopolitical factors, before it has a shot at regaining a major share in the country.
