Korean tech giant launches special team to revitalize sales in China
By Baek Byung-yeul
Samsung Electronics has launched a special team to exclusively take charge of its businesses in China aiming to achieve a breakthrough in sluggish sales in one of the largest IT markets in the world, according to sources, Sunday.
The new team will report directly to Vice Chairman Han Jong-hee, head of the newly merged unit for mobile devices and home appliances called the DX (Device eXperience) Division, the industry sources said.
The team consists of two sections ― one supporting human resource management and marketing, and the other comprised of officials from the mobile device, home appliances, display and semiconductor divisions.
"The move can be interpreted as Han directly seeking to create a turning point in China," an industry official said. Samsung declined to confirm the launch of the team.
China has been a key market for Samsung, accounting for the largest share of its total sales. In the third quarter, China accounted for 30 percent of the firm's total global sales, followed by the United States which accounted for 29 percent, Asia and Africa 16.4 percent and Europe 12.6 percent.
Han, who led Samsung's TV business, was promoted to vice chairman during a reshuffle of executives earlier this month. He is now in charge of the DX Division, comprised of the visual display, digital appliances, health and medical equipment, MX (mobile phone and tablet) and networks businesses.
The new vice chairman is set to make his international debut at the upcoming Consumer Electronics Show in Las Vegas in January. At the world's largest tech show, Samsung said Han will deliver a keynote speech and share the company's future growth strategy.
Samsung has struggled in China over the past few years, especially in the smartphone business, where it has a less than 1 percent market share. This has been a disappointment for the firm, which accounts for the largest share of the global smartphone market.
Samsung used to account for over 20 percent of the Chinese market between 2013 and 2014; but the share fell dramatically to below 1 percent from 2019, according to market tracker Counterpoint Research.
Industry analysts said the fall came from the rapid growth of Chinese phone makers such as Huawei, Xiaomi, Oppo and Vivo. Despite favorable responses generated by its foldable phones globally, Samsung's new devices have failed to pique significant consumer interest in China.
As Chinese phone makers are rushing to release their versions of foldable phones, the competitiveness of Samsung's Galaxy smartphone brand is showing no signs of recovery in China.
Supply chain management issues also influenced the establishment of the China-specialized team. Samsung has operated a memory chip production plant in Xi'an and chip packaging plant in Suzhou. In particular, the Xi'an plant is Samsung's only overseas memory chip production facility.
Speculation is also mounting that Samsung Group chief Lee Jae-yong may visit China soon. After he was released on parole in August, Lee flew to Canada, the U.S. and the Middle East to seek new business opportunities in the post-pandemic period.
By Baek Byung-yeul
Samsung Electronics has launched a special team to exclusively take charge of its businesses in China aiming to achieve a breakthrough in sluggish sales in one of the largest IT markets in the world, according to sources, Sunday.
The new team will report directly to Vice Chairman Han Jong-hee, head of the newly merged unit for mobile devices and home appliances called the DX (Device eXperience) Division, the industry sources said.
The team consists of two sections ― one supporting human resource management and marketing, and the other comprised of officials from the mobile device, home appliances, display and semiconductor divisions.
"The move can be interpreted as Han directly seeking to create a turning point in China," an industry official said. Samsung declined to confirm the launch of the team.
China has been a key market for Samsung, accounting for the largest share of its total sales. In the third quarter, China accounted for 30 percent of the firm's total global sales, followed by the United States which accounted for 29 percent, Asia and Africa 16.4 percent and Europe 12.6 percent.
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| Samsung Electronics Vice Chairman and CEO Han Jong-hee / Courtesy of Samsung Electronics |
Han, who led Samsung's TV business, was promoted to vice chairman during a reshuffle of executives earlier this month. He is now in charge of the DX Division, comprised of the visual display, digital appliances, health and medical equipment, MX (mobile phone and tablet) and networks businesses.
The new vice chairman is set to make his international debut at the upcoming Consumer Electronics Show in Las Vegas in January. At the world's largest tech show, Samsung said Han will deliver a keynote speech and share the company's future growth strategy.
Samsung has struggled in China over the past few years, especially in the smartphone business, where it has a less than 1 percent market share. This has been a disappointment for the firm, which accounts for the largest share of the global smartphone market.
Samsung used to account for over 20 percent of the Chinese market between 2013 and 2014; but the share fell dramatically to below 1 percent from 2019, according to market tracker Counterpoint Research.
Industry analysts said the fall came from the rapid growth of Chinese phone makers such as Huawei, Xiaomi, Oppo and Vivo. Despite favorable responses generated by its foldable phones globally, Samsung's new devices have failed to pique significant consumer interest in China.
As Chinese phone makers are rushing to release their versions of foldable phones, the competitiveness of Samsung's Galaxy smartphone brand is showing no signs of recovery in China.
Supply chain management issues also influenced the establishment of the China-specialized team. Samsung has operated a memory chip production plant in Xi'an and chip packaging plant in Suzhou. In particular, the Xi'an plant is Samsung's only overseas memory chip production facility.
Speculation is also mounting that Samsung Group chief Lee Jae-yong may visit China soon. After he was released on parole in August, Lee flew to Canada, the U.S. and the Middle East to seek new business opportunities in the post-pandemic period.
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