Samsung planning to launch online exclusive phones, wants to end Xiaomi's dominance
Samsung will soon launch a series of mobile phone which will be sold exclusively on online platforms. The move is aimed at Chinese device manufacturer Xiaomi, which has about 50 percent market share of all the mobile phones sold online, reports The Economic Times.
Senior industry executives who spoke to the paper said that Samsung will be launching phones in the range of Rs 5,000 to Rs 15,000 and they will boast of best-in-class specifications. The phone will be priced in order to take on extremely popular Xiaomi phones and will be targeting the youth segment.
According to International Data Corporation, Xiaomi and Samsung enjoy pole position as far as market share is concerned with both tied at 23.5 percent each in the July-September quarter. However, Samsung has a vice-like grip in the offline market whereas Xiaomi excels in selling online.
Samsung already has made its online presence felt with On series of smartphones and the Galaxy A8+ model phone, which are sold exclusively on Amazon. Priced at Rs 32,990, the phone will directly compete with Xiaomi’s flagship phone Mi Mix 2. Both the phones have similar specifications and are placed in a similar price band.
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Hong Kong-based research firm Counterpoint Technology Market Research says Xiaomi’s meteoric rise in India has been mainly due to its strong online presence backed by an absolute lack of competition in the e-tailing space. According to a Samsung executive, the company is looking to target precisely this segment with the launch of its online series.
"Samsung wants to extend its lead with Xiaomi and it is possible only by expanding e-commerce sales while consolidating its presence in offline channels. It will ensure that the 1.5 lakh brick-and-mortar stores selling its handsets are not neglected since Samsung knows it will take time for Xiaomi to build such a vast offline network," a senior industry executive said.
The company has adopted various strategies in order to boost sales which includes reducing trade partners to 2-3 from 10-12 earlier. "The layers of distribution for online sales are also being cut to ensure margins are better controlled, which can be passed for aggressive pricing," an executive stated.
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