According to the Ministry of Commerce, data from market research firm DisplaySearch shows that in 2011, the global market share of Korean Samsung and LG televisions reached 20% and 13%, respectively, ranking first and second globally. However, as we enter 2012, the two Korean powerhouses have had to make adjustments due to a sluggish market. Samsung split off its LCD business and is considering launching products with greater price competitiveness. LG, on the other hand, adopted a conservative strategy, focusing on protecting profits.
Samsung aims to capture more market share. Following Sony's exit from its joint panel venture with Samsung in 2011, Samsung also spun off its loss-making LCD panel business into a subsidiary. Samsung Electronics announced plans to spin off its LCD business into an independent holding company to revitalize its flat-panel TV business. The new company will begin operations on April 1.
While spinning off, Samsung is also preparing to adjust its product line to target the low-end television market. According to foreign media reports, Kim Hyun-suk, Executive Vice President of Samsung's display department, stated: "We have been preparing to launch affordable TVs while also striving to optimize production costs and reduce retail prices. Affordable TVs will be available for sale within one or two months."
Yesterday, a relevant person in charge of Samsung Electronics' Chinese color TV told the Southern Metropolis Daily that Samsung indeed is making related preparations and has certain strategic arrangements for these products. However, they emphasized that this is just part of it, as Samsung has many high-end new products showcased at CES that will be gradually introduced to China.
Lee Myung-seok, Director of Samsung's Color TV Product Marketing Department, also stated that the company has set certain goals for both scale and profit this year. Samsung holds an advantageous position in the high-end market, and this year's Samsung color TV new products will see functional improvements. "Samsung does not possess a comparative advantage in pricing domestically, but Samsung will not suddenly lower prices, though changes brought about by the new product line cannot be ruled out."
Samsung's global flat-panel TV sales last year were approximately 43 million units, with a target of 50 million units this year. Home appliance expert Liu Budust expressed that Samsung's strategy is very clear; with limited market expansion, it hopes to capture more market share. Samsung's brand image is high-end, and introducing low-priced products targets the low-end market, "such as the rural market in China, where its brand appeal can drive significant sales volumes with consumer-friendly pricing."