Samsung Electronics mulls China TV, appliance exit: Nikkei - 네이트

Samsung Electronics Co. is “poised to withdraw” its home appliance and TV sales business in China within the year, according to a report by Japan’s Nikkei on Monday. The report noted that Samsung Electronics may decide as early as this month whether to halt sales operations in China. After informing business partners and local employees, the company plans to gradually deplete inventory and end sales within the year, the report said. Samsung Electronics is likely to retain production bases, with a plan under review to keep manufacturing of refrigerators, washing machines and air conditioners in China and use the facilities as supply hubs for nearby markets. The move would separate sales from manufacturing, exiting China’s consumer market while maintaining production. It reflects efforts to realign operations as price competition intensifies and profitability declines in the market. Earlier this month, Yong Seok-woo, head of Samsung Electronics’ Video Display division, said at a press event in Seoul that “the China market remains challenging,” adding that the company is “reviewing various options.” Samsung Electronics has lost ground in China amid stronger competition from local rivals including TCL Technology Group Corp. and Hisense Home Appliances Group Co. Analysts have called for a selection and concentration strategy, urging the company to exit low-margin appliance sales and focus on more competitive segments. Growing market share by Chinese brands, supported by pricing and distribution advantages, has increased pressure on global manufacturers to adjust strategy. Data from Beijing Runto Technology Co. showed China’s TV shipments reached 32.89 million units last year, with overseas brands accounting for fewer than 1 million units. According to Euromonitor, Chinese brands including Hisense and TCL held a combined 31.9 percent share of the global TV market, compared with 30.4 percent for Samsung Electronics and LG Electronics. In 2016, Korea held 35 percent and China 16 percent. Samsung Electronics, in the meantime, said “no decision has been made” on a potential China exit. ▶ “코로나 때가 나았다는 소리 나올 판”…빚 못갚는 중기·소상공인 급증 ▶ “서로 사겠다고 난리”…삼성전기가 만드는 이 부품, 부르는 게 값 ▶ “댄스 가수 생명 끝…은퇴 고민” 김희철, 교통사고로 장애 4급 판정 ▶ “아버지가 말이다”…수척해진 최불암 모습에 배우 채시라 오열 ▶ “트럼프 정부는 황금 같은 기회”…이란 전쟁에 떼돈 버는 이 기업