India is a major market that's dominated by offline mobile shops. Even though the number of gadgets being sold online increases substantially every year, the vast retail network of shops still maintains a dominant position.
Samsung has a strong retail presence in the country not just through its own stores but also through independently owned mobile shops. The company is now looking to tap into its retail network to sell televisions and other home appliances.
Samsung is tapping into its massive retail network to sell more TVs
Around 1,100 of Samsung's exclusive mobile phone retail outlets will participate in this pilot program initially. Samsung is looking to eventually double this number through which it can sell its premium QLED TVs.
It eventually wants to expand this strategy to multi-brand mobile phone shops, cellphone retail chains and even neighbourhood outlets. Since these stores will likely have limited space to store inventory, Samsung might fulfil the orders for TVs and home appliances directly from its distributors.
Samsung already enjoys a 32% share in the TV market of India. The company is looking to expand this to 36% through this latest distribution initiative in addition to launching new stores down the line.
“We doubled the QLED business last year and want to triple it this year. We are growing at 70-110% in 55 inches and above screen sizes as compared to 33-40% industry growth rate,” said Mohandeep Singh, SVP for the consumer electronics business at Samsung India.
This strategy is bound to pay dividends for the company. Many customers still prefer buying their phones at the shop. This will present Samsung with the opportunity to effectively upsell them on a premium TV at the retail location.
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