As one of the world’s leading mobile phones, Samsung is brewing a series of measures to “return” to the Chinese market, or bring new changes to the highly competitive Chinese market and even the global mobile phone market.
On March 1, the reporter of China business daily learned from Samsung that following the release of its latest flagship mobile phone Galaxy S22 series at Samsung’s global new product launch on February 9, a series of offline marketing and promotion activities are rapidly unfolding across the country and will be fully sold in China on March 4.
It is reported that the Samsung Galaxy S22 series sold 1.02 million mobile phones in just eight days from its launch on February 14 to February 21, breaking the record of 1 million in 11 days of Galaxy S8 series released by Samsung in 2017 and becoming the best-selling mobile phone in Samsung’s history. As Samsung’s blockbuster to “return” to the Chinese market, this mobile phone has also been highly expected by Samsung.
At the same time, the reporter noted that Samsung mobile phones have made frequent moves in the Chinese market recently. First, it is reported that Samsung has established a new China team. This department is named “China market innovation group” and reports directly to Samsung Vice Chairman Han Zhongxi; In January this year, Samsung signed a 2022 strategic cooperation agreement with JD. The two sides will cooperate around marketing and channels. These are interpreted by the outside world as important signals for Samsung mobile phones to overweight the Chinese market.
Although the Samsung Galaxy S22 series is coming fiercely, and Samsung’s layout in the Chinese market is also accelerating, in the view of industry insiders, the “return” journey of Samsung mobile phones to China is obviously not easy. “Although Samsung mobile phone still ranks first in the global mobile phone market in 2021, it has withdrawn from the ranks of mainstream players in the Chinese market. At present, Chinese consumers do not have a strong perception of Samsung mobile phone; secondly, although China’s mobile phone market is huge, there are many players, fierce competition and slow growth, which has gradually become a red sea.” A mobile phone industry analyst told reporters that “returning to China” may be a strategic choice for Samsung mobile phone, even if it is not easy.
high hopes
Samsung Galaxy S22 series is the first flagship mobile phone of Samsung in 2022, which is also called “the most powerful flagship model in Samsung’s history”.
After combing, the reporter found that the main products of this series of mobile phones are mainly in three aspects: overall design, configuration performance and photography, which are basically consistent with the focus of flagship mobile phones of major mobile phone brands.
In terms of design, the overall design of Samsung Galaxy S22 series follows the style of Samsung Galaxy S series, and still adopts the iconic integrated body design, with four colors of obsidian night black, feather dream white, misty pine green and floating light powder, with high recognition.
“A good design should not only be concise and beautiful, but also reflect the concept and image of the brand, and make a clear distinction from other brand mobile phones. In this regard, apple and others do better. They basically know that this is an iPhone without brand logo.” The above mobile phone industry analysts said that the integrated fuselage and “contour cutting” camera module bulge of Samsung Galaxy S22 series basically achieve this and have high brand recognition.
In terms of performance configuration, Samsung Galaxy S22 series is equipped with a new 4nm high-performance processor, and all use high refresh rate displays. In terms of images that consumers have paid much attention to in recent years, Samsung Galaxy S22 series has also been optimized accordingly. Equipped with larger photosensitive components, it further upgraded the night shooting solution, sharpened details and reduced noise through AI technology, and recognized objects and scenes at the same time.
In terms of mobile phone life, it has also been upgraded accordingly, and supports 45W fast charging and 15W wireless charging. However, some insiders said that compared with the improvement of configuration performance, the improvement of battery capacity and fast charging may not be satisfactory. At present, the fastest mobile phone charging in China has exceeded 120W.
According to Samsung’s public data, the series of mobile phones went on sale on February 14, and more than one million units were sold in just eight days, setting a new record for Samsung’s mobile phone sales. “This is Samsung’s first flagship series of mobile phones in the beginning of the year. The performance and configuration have been greatly improved. At present, the market feedback is good, and Samsung has high hopes. It has become a heavy product to reopen the Chinese market.” A person close to Samsung told reporters, but the actual situation still needs to be tested by the market.
strategic choice
Price is often a key factor in the sales and market performance of mobile phones.
It is worth noting that the flagship of Samsung Galaxy S22 series includes three versions: the recommended retail price of Samsung Galaxy S22 starts from 4999 yuan, the recommended retail price of Samsung Galaxy S22 + starts from 6599 yuan, and the recommended retail price of Samsung Galaxy S22 ultra starts from 9699 yuan.
This series of mobile phones ranges from nearly 5000 yuan to more than 10000 yuan, covering a wide price range. “The launch of multiple versions and the price difference of more than 5000 yuan can meet and cover the needs of users in the market as much as possible, but the minimum price is 4999 yuan, which is enough to persuade many users.” The above mobile phone industry analysts said that Samsung’s intention this time is still relatively clear. They don’t expect how much sales this mobile phone can bring, but first brush the sense of existence and establish a fashionable and high-end brand image.
At present, apple and Samsung still have obvious advantages in the global high-end mobile phone market. According to the Research Report of strategy analytics, in the first quarter of 2021, ultra-high-end mobile phones with more than $900 (about 5700 yuan) accounted for 25% of the global smartphone revenue, and Samsung and apple were absolutely dominant.
One advantage of Samsung mobile phone is that it is backed by a “big family and big business” Samsung Group, which not only provides sufficient technical and financial support for Samsung mobile phone, but also involves in the whole industry chain of mobile phone: in terms of screen, Samsung’s OLED screen capacity ranks first in the world; On the chip, Samsung has its own series of chips, which can be developed, designed and even produced by itself, and has the same 4nm production process as TSMC; Samsung can produce other flash memory, lens CMOS and other products. Samsung is also a major supplier of Apple’s mobile phone screens and memory.
At present, the mainstream mobile phone manufacturers that do not rely on the supply of external parts in the mobile phone market are mainly Samsung. “The advantage of the whole industrial chain layout is that it is less affected by the shortage of goods in the upstream supply chain, and has better control over the cost and production rhythm of the supply chain.” The above mobile phone industry analysts said that it can be said that it is the advantages of mobile phone supply chain that push Samsung to the top of the global mobile phone market step by step.
However, Samsung’s advantages in the global mobile phone market and supply chain are also facing more challenges. In terms of screen, BOE and TCL Huaxing Optoelectronics in China are rising strongly; In terms of chip OEM, TSMC has obvious advantages, and Intel is also making efforts to take a share; In the mobile phone market, apple mobile phone still has outstanding advantages in the high-end market, while in the medium and low-end market, domestic mobile phone brands such as Xiaomi, glory, oppo and vivo have conquered cities and occupied more market share in the global market.
According to the data released by canalys, a well-known market research organization, the global mobile phone market shares of Samsung, apple, Xiaomi, oppo and vivo in 2021 were 20%, 17%, 12%, 11% and 10% respectively, with year-on-year growth rates of 7%, 11%, 28%, 22% and 15% respectively. Although Samsung still occupies the leading position in the global mobile phone market, it is in urgent pursuit and approaching.
Similarly, taking the AMOLED screen with Samsung’s traditional advantages as an example, Samsung currently accounts for nearly 70% of the global share, but under the background of the strong rise of BOE and other manufacturers, the share also declined in 2021. “First, the technology of AMOLED in China has been quite mature and the production capacity has been gradually released. Second, the growth of domestic mobile phone brands and high-end models. Enterprises strategically choose Chinese suppliers for supply chain security.” Dong min, Deputy Secretary General of China electronic video industry association, told reporters.
In this context, it is Samsung’s realistic and strategic choice to re overweight China, the world’s largest mobile phone market.
will be a breakthrough
At present, in order to reopen the broad market of China, in addition to releasing heavy products, Samsung is also quietly making efforts in the construction of teams, channels and brands.
At the beginning of the new year in 2022, according to Korean media reports, Samsung established a new China team, which was named “China business innovation team”, covering mobile phones and home devices. And the new Department has a high status and reports directly to Han Zhongxi, vice chairman of Samsung.
It is reported that one of the important responsibilities of the “China market innovation group” is to be responsible for the marketing strategy of the Chinese market and analyze China’s unique business habits and consumer preferences. Sina Technology quoted supply chain sources as saying that Samsung will carry out large-scale marketing activities in China. New product release, media appreciation and other related activities will be launched throughout the country.
Channel construction is also a focus of Samsung’s current efforts. Cui Shengzhi, the current president of Samsung Electronics Greater China, quickly visited Liu Donghai, chairman of Dixon group, and Zhang Dongdong, chairman of Suning group shortly after taking office in 2020. It is interpreted by the outside world as an important measure to strengthen online sales and channel promotion. On January 12, 2022, Samsung and JD signed a 2022 strategic cooperation agreement. The two sides will cooperate around marketing and channels, with an expected target of 5 billion yuan.
Even in products, Samsung will fight a combination of punches. A Samsung staff member told our reporter that the first half of this year will focus on flagship phones such as Galaxy S22, and the promotion of folding screen phones will be strengthened in the second half of this year. The folding screen mobile phone is Samsung’s traditional advantage field, and has a strong influence among Chinese consumers.
Since reaching the top in 2012, Samsung has ranked first in the global mobile phone market for many years, and its market share in China once exceeded 30%. “Samsung has obvious advantages in capital, technology and supply chain. The market advantages and details accumulated over the years are still there, but today’s Chinese market is fully competitive and gradually becoming a red sea. It is not easy for Samsung to face the rising apple and the rapidly rising Chinese mobile phone brand at the same time.” The above mobile phone industry analysts said that re adding weight to the Chinese market would be a strategic choice for Samsung.
Will the galaxy S22 series, which is highly expected by Samsung, be a breakthrough to “return” to the Chinese market? What changes and impacts will it bring to China and the global mobile phone market? Everything has yet to be tested by the market and time, and our reporter will continue to pay attention.
