Blogger Paul Gorodnitsky — about why the Korean company will soon fail in the Chinese market.
Samsung Galaxy Note 7 was released three months ago and became the most controversial smartphone of the year: gadgets exploded, they were banned, then allowed, then banned, and eventually just buried. Story jam: the Koreans have announced the mass return of the devices and seems to be moved to work on the Galaxy S8.
the Tragedy happened on October 29, when 23 of the top Manager Samsung arrived in the Chinese city of Shijiazhuang, came on the scene, knelt down and lowered his head to the floor. It was assumed that this event will be closed — it was organized exclusively for dealers. In fact, all the opposite happened: the next day photos of the management of Korean companies discussed in all social networks.
First wrote that Samsung apologized to users: then, despite all the farce occurred, this act would be a worthy explanation. But later it turned out that the Koreans have not asked for forgiveness: they only expressed gratitude to the dealers for what they will continue to buy from Samsung smartphones after the horrible incident with the Galaxy Note 7.
In the end, Asia pierced powerful mediasrv autumn. The main problem is the difference in traditions. In Korea it is believed that as a sign of respect in exceptional cases it is possible to kneel. In China this gesture as many as four purposes: to get on the ground you can either to God or to parents, or the barrel of a gun (plea for mercy), or because poverty and hunger (so people have to ask for a bowl of rice). It is obvious that the act of Korean bosses not fit under any of the paragraphs.
However, there are bonus scenario: the brutal Chinese employers guilty of forced employees to kneel down for the sake of humiliation. Is, for example, happened two years ago with sales managers who have not fulfilled the plan. As punishment they were taken to the bridge, ordered to go down on their knees and forced to shout the phrase “We’re sorry.” This show lasted an hour, and the name of the company where you work crazy bosses, remained a secret.
it is Logical that now the Chinese thought, if managers Samsung dishonoured due to bombing Galaxy Note 7 — not enough only to chant.
In China has accumulated enough complaints to Samsung and its leadership. The main reasons for dissatisfaction five:
- Disrespectful to local traditions (they need to learn before you go to such desperate measures).
- Bullying their own workers (in China really sympathize with those who are forced to go to the people on October 29).
- the Contempt for the Chinese market (in the United States return program explosive Galaxy Note 7 launched a week earlier than in China).
- Poorly-organized return procedure (owners Note 7 remotely blocked the charge level to 60%, but not really told when and how to return the smartphone manufacturer).
- the Silence of the causes of the incident with the Galaxy Note 7 (the investigation is ongoing, but no results; if not before the release of the S8, the new flagship will fail).
The sad that all this is happening against the background of rapid decline of sales of Samsung in China. On the one hand Koreans are attacking a local company, and on the other the Apple, realizing the importance of this market.
the Americans also had problems in this area, but Tim cook took to rectify the situation. However, he did not have to kneel down: cook like a reasonable person, personally came to China and promised the local authorities to open their first research center of the Apple. Prior to this, the company invested a billion dollars into the Chinese taxi Didi Chuxing (alternative to Uber). As noted by cook, is an investment needed in order to better understand the local market.
Samsung acted sillier and more straightforward. But I must say that the situation of Koreans in China was precarious, and to the history with explosions and knees.
first, the share of Samsung in China have steadily declined because of the almost hopeless struggle with local manufacturers. The most severe fall happened in 2014, from 22% to 12.5%. Now Samsung is not even in the top five most popular manufacturers in China (Apple is in third place with a huge separation from the principle rival).
second, Samsung was involved in a judicial conflict with local it giant in June 2016, Huawei (a leader of the Chinese market) attacked the rival’s claim of patent infringement. What the outcome of this case is unclear, but it is clear that the Koreans will be very difficult to restore the reputation and sales figures. In China they are not welcome.
Thus, the key Asian market (except domestic) for Samsung will probably be an Indian: there are massively buying its Galaxy smartphones, but a serious profit it brings, because we are talking about budget J-line.
Black autumn-2016 may prove to be fatal in the recent history of Samsung: while the Koreans are considered the most popular smartphone manufacturer in the world, but in the near future this status may to sail to the most active participant in the Chinese market.
Market, which was given to the Koreans is virtually without a fight.
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