Samsung Electronics' Largest Store in China Closed Due to COVID-19, Electronic Industry Damage Spreads

Damage to Korean Companies Operating Locally Expands Due to Novel Coronavirus Crisis

[Asia Economy Reporter Changhwan Lee] Due to the novel coronavirus outbreak, Samsung Electronics' largest flagship store in China has also suspended operations. Following the shutdown of manufacturing plants by major domestic home appliance companies in China, concerns are rising over a chain reaction of damages as retail stores are also unable to open.

According to industry sources on the 4th, Samsung Electronics announced that it will suspend operations at its flagship store in Shanghai, China, until the 9th. The Samsung flagship store in Shanghai is the first flagship store Samsung opened in China last October.

It is the largest single home appliance store of Samsung Electronics in China. The store primarily focuses on selling mobile devices such as smartphones and tablet PCs and serves as a place where customers can experience various Samsung smart IT devices, acting as a "forward base" for targeting the Chinese mobile market.

A company official stated, "Since the Shanghai store is the largest in China and has a very high foot traffic, we decided to close it for safety reasons," adding, "Other stores are individually operated, so their operation will be decided based on future circumstances."

Currently, not only Samsung but also several global companies are temporarily suspending operations of large stores in China. Apple has also closed all official stores on the Chinese mainland due to the novel coronavirus. On the 1st, Apple issued a statement announcing the closure of not only stores but also offices and customer centers in China due to the virus.

Swedish furniture company IKEA also announced a temporary suspension of all its stores in China, while McDonald's and Starbucks have temporarily closed some of their stores in China.

The industry views that the novel coronavirus outbreak is causing comprehensive damage to Korean companies operating in China, from manufacturing plant shutdowns to retail sales suspensions.

Previously, Samsung Electronics announced the suspension of operations at its home appliance factory located in Suzhou, Jiangsu Province, China, until the 8th. LG Electronics has also suspended operations at home appliance factories located in Nanjing and Taizhou until this week.

Accordingly, there are forecasts that domestic delivery of major home appliances will also be disrupted. It is understood that Samsung Electronics and LG Electronics have recently notified through distribution channels that the supply of some home appliances produced in China will be delayed compared to previous years.

Although the Chinese government has recommended suspending factory and business operations at least until this week, there is speculation that the reopening may be delayed further if the virus transmission situation does not improve. An industry official said, "If the factory shutdown continues for a long time, the domestic electronics industry could suffer significant damage from sales to delivery, so concerns are high."

This content was produced with the assistance of AI translation services.