Samsung to double retail footprint, boost premium TV sales

New Delhi : South Korean electronics major Samsung is looking to double its retail footprint in India by expanding both exclusive and partner-operated stores. A senior executive said in an interview that the company aims to increase its store count from 2,500 to 5,000 by the end of this year, and focus on selling premium TVs in Tier 2 and 3 cities.

“We will continue to be present across all channels, but we are focusing on expanding our offline store network. As of last year, we had approximately 2,500 retail partner stores selling QLED televisions. This year, we will be at 5,000,” said Mohandeep Singh, senior vice president, consumer electronics business, Samsung India.

Singh said, apart from doubling its retail presence, Samsung plans to increase the number of “experience centres” from two to 15 this year. On Wednesday the firm introduced a new range of premium QLED, or quantum dot LEDs, and Neo-QLED. TVs for the Indian market after being unveiled at the Consumer Electronics Show 2023 in Las Vegas earlier this year. TV lineup begins Uses quantum dots in front of the regular LED backlight panel to enhance 1.42 million more colors.

Singh said its store footfalls have increased since the pandemic, and premium products generally perform better in-store, as customers like to “touch and feel them” before purchasing. He also sees a premiumization trend in the TV market moving beyond metros and Tier 1 cities.

“Demand in small towns is growing as fast as in big cities and sometimes even faster.” For instance, Davangere, Gorakhpur, Bathinda and Dibrugarh are some of the smaller cities where Samsung is witnessing a growing demand for premium televisions.

According to Counterpoint Research, smart TV shipments are set to see a 28% increase in 2022 compared to a year ago. Samsung was the second largest smart TV brand, accounting for 10.2% of shipments, while China’s Xiaomi led the market with a 10.5% share.

Samsung saw a growing preference for large-screen TVs and a “rapid transition” from 32-inch to 43-inch ultra-high definition TVs, Singh said. for premium technologies like QLED and 8K.”

TVs above 55 inches saw a growth of 150% during 2020- 2022, while the 65-inch segment grew by 200% and the 75-inch category by over 300%.

The company expects its QLED TV business, which is part of its most premium lines, to grow 2x in 2023. Televisions with 8K resolution also saw a 2X growth for Samsung last year, and the firm plans to take it up to 3X this year.

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