Samsung has held its position as the top TV brand globally for almost two decades now, yet its dominance faces challenges in specific markets.
One such market is Japan, where Chinese TV manufacturers are posing a significant threat. Samsung’s market share in Japan is currently in the single digits, contrasting with the double-digit shares it enjoys in many other major markets.
Chinese Brands’ Price Advantage
The Nikkei reports that Chinese manufacturers now account for more than half of all TV sales in Japan. This surge in popularity is cited as a primary factor hindering Samsung’s growth in the Japanese market.
Samsung’s formal exit from the Japanese TV and home appliance sector in 2007 further complicates its position. While rumors of a potential return have surfaced, no concrete plans have materialized.
Japanese consumers have traditionally favored domestic brands. However, Chinese TV brands have successfully attracted local customers by offering significantly lower prices, even with established Japanese brands like Sony still in the market.
This strategy mirrors the approach Chinese companies often take across various industries: undercutting competitors with more affordable alternatives. In Japan, Chinese TV makers offer options at nearly half the price of other brands. Price-conscious consumers tend to gravitate towards these budget-friendly choices.
LG, Samsung’s competitor, has also attempted to attract Japanese consumers with premium OLED and large-screen TVs, but it faces similar challenges from Chinese brands.
While Samsung focuses on innovation to offer the latest and greatest tech, Chinese TV manufacturers have found a way to appeal to the customer base in Japan.