As Samsung Packs Up, Chinese Media Boast: "It's Our Success That Drove Them Out"

Samsung Decides to Halt Sales of Home Appliances and TVs in China
Chinese Media: "Local Brands Grow, Samsung's Market Share Declines"
Chinese Companies Now Hold 94.1% Share of the TV Market

As Samsung Electronics has decided to withdraw from the home appliance and TV markets in China, Chinese media outlets have evaluated this as a natural outcome driven by the growth of their domestic industries.

Image of Samsung Electronics TV to help understand the article. Photo by AFP Yonhap News Agency

On May 6, Samsung Electronics officially confirmed that it will stop selling home appliances and TVs in the Chinese market. The company plans to reduce the proportion of its low-profit finished goods business and restructure its portfolio to focus on high value-added sectors such as mobile devices, semiconductors, and medical equipment. Regarding this, on May 7, Chinese media outlet The Paper commented in an editorial, "To better understand the decision made by this global giant, we need to objectively consider the background of Samsung Electronics' withdrawal from the Chinese home appliance market." The outlet assessed the move as a reasonable choice driven by market changes and a realignment of corporate strategy.

The newspaper cited the rapid rise of domestic Chinese brands and the declining local market share of Samsung Electronics as reasons for the withdrawal. It stated, "At one time, Samsung Electronics exercised strong influence in the Chinese market through its sales of TVs, home appliances, and smartphones," but added, "In recent years, its local market share has declined rapidly." The report continued, "Chinese companies such as Hisense, TCL, Xiaomi, Haier, and Midea have quickly expanded their market presence by leveraging core technologies and price competitiveness," noting, "In some areas, they are even considered to have surpassed global brands."

Dazegang, a researcher at the Northeast Asian Research Institute of the Heilongjiang Academy of Social Sciences, said, "Samsung's shift in its investment focus within China to artificial intelligence (AI), eco-friendly development, and other high value-added advanced technology sectors aligns with China's manufacturing development priorities."

Photo to aid in understanding the article. Pixabay

The state-run English-language newspaper Global Times also presented a similar perspective, citing industry experts. According to industry analyst Liu Dingding, "As foreign brands' market share has declined, the cost of maintaining operations in China has become increasingly unjustifiable, so withdrawal is a rational business decision."

He analyzed, "The contraction of Korean consumer electronics and automotive brands in China fundamentally reflects the rise of Chinese manufacturing and innovation," adding, "As consumers are now able to access higher-quality alternatives, this trend has become apparent." He further predicted, "Brands that fail to adapt to market changes or to improve product performance in a timely manner are likely to be naturally pushed out by market forces."

Dong Min, secretary general of the China Video Industry Association, stated, "(Samsung Electronics) lacked localization in terms of corporate management and products," and added, "As Chinese brands have grown rapidly, they have dealt a major blow to Samsung Electronics. It has already become difficult for Samsung to maintain its brand premium within similar product categories."

According to data from market research firm AVC (Aowei Cloud Network), as of April 5 this year, Samsung Electronics held just a 3.62% share of the Chinese TV market (based on offline channel sales), ranking only fifth. Its refrigerator and washing machine market shares were just 0.41% and 0.38%, respectively. Furthermore, analysis shows that out of the 32.89 million TVs shipped in China last year, the combined market share of eight Chinese companies reached 94.1%.

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