Samsung, once the epitome of “modern” mobile phones has been under serious competition from Chinese brands like Xiaomi, and other brands from BBK Electronics (like Oppo, Realme, Vivo and OnePlus ). Not long ago, to take over the market, Samsung had launched its A and M series focusing on the mid-range smartphone market . The company has also been using recent techniques which include advertisements from Bollywood Celebrities and Cricketers .
Now, a fresh report from Reuters suggests, that the Korean electronics conglomerate is looking at providing finance services to its customers as well. “Samsung Electronics is to provide finance to potential smartphone buyers,” a company executive said on Thursday, in a bid to boost smartphone sales in India.
Mohandeep Singh, Samsung India’s senior vice president has remarked that the financing product, for which Samsung has tied up with a local shadow banking firm, will help the South Korean tech group offer quick and easy loans to all prospective smartphone customers.
“We are giving finance to consumers who have not been served consumer finance in the past,” Singh said. He said the company would launch the product in 5,000 stores in 30 cities, and by the end of the year it wants to be in 10,000 stores in 100 cities.
Clearly Samsung wants to boost up its sales and wants to have a pretty good comeback in the smartphone market that was once its playground. In India, the bulk of phones are sold by retailers, with customers choosing wireless carriers and mobile plans on their own. However the scenario is quite different in the Western markets, where smartphones are often tied to telecom company contracts.
Quite certainly when it comes to smartphone markets, India is full of potential with more than a billion wireless connections and just about 450 million smartphones. It is a key growth market for companies such as Samsung, which sells its devices through 180,000 retail outlets and more than 2,000 exclusive stores.
How is Samsung’s finance service different from other players in the market?
Well unlike other smartphone giants offering similar schemes through tie-ups with finance firms, Samsung will be having its own loan product will likely help to drive sales. Samsung will initially offer an interest free loan to customers across its smartphone range, Singh said, adding that financing terms such as interest could vary in future.
Samsung has already responded with launch of budget devices and has become savvier with online marketing to millennials to claim back their lost glory and market shares. Considering the current situation with Xiaomi ruling the lower mid-range market and Oppo & Vivo constantly launching new products every now and then, its really hard for Samsung to work that extra mile and bring something outstanding to flock new customers. Samsung is trying to bring back the glamour in its brand. Nevertheless, its interesting to study how the company is focusing on India to grow its business further.
