Samsung targets millennials with bespoke devices in post-pandemic market share battle
- During the Covid-19 pandemic, the company saw a surge in orders for refrigerators and cleaners as people stayed at home
- Samsung hopes to prolong the demand by luring younger buyers with personalised devices, such as fridges that can be customised by size, material and colour
After a boom in sales of refrigerators and cleaners during the coronavirus pandemic, Samsung Electronics’ home appliance business is planning for the post-pandemic era by focusing on offering personalised devices to younger customers.
The South Korean giant’s home appliance business, which accounts for almost 10 per cent of total revenue, should report a 10 per cent increase in sales for 2020, said Jaeseung Lee, president and head of digital appliances business.
Demand will continue through the first six months of this year, but sales will start to weaken in the second half once the economic effect of subsidies wane and people start getting back to normal life after vaccines roll out, according to Lee.
“We are drawing up contingency plans as we expect a sales slowdown in the second half,” he said at Samsung’s headquarters in Suwon. “There will be another new battle for market share. We will aggressively carry out new product sales for the second half and overcome challenges by providing differentiated products.”
Spurred by stay-at-home demand, the world’s largest memory chip and electronics maker has benefited from strong sales of semiconductors that go into everything from PCs and TVs to data centres as well as digital appliances.
Samsung’s home appliance business initially suffered from plant closures when Covid-19 spread to Europe and the US last year but the company swiftly adjusted its global supply chain to meet increased demand for larger fridges to store food and for vacuum cleaners and washing machines.
Looking to the post-Covid era, Samsung plans to target millennial customers who shop online and prefer personalised designs, Lee said.