Samsung to tackle Xiaomi with its new range of Online-only Smartphone

Samsung is going to price their new range of online-only smartphone aggressively in the sub-Rs 15,000

Xiaomi & Samsung

Samsung is planning to tackle the Online Kingdom of Xiaomi Smartphone with its new series of Online only Smartphone but then Samsung needs to work upon hard on it as not only pricing that will make them succeed but also good specs in the given price range can also make the difference.

Samsung new series is expected to be aggressively priced between Rs 5,000-Rs 15,000. Well if we look at IDC report, Xiaomi achieved a market share of 23.5 percent and shared the top spot with Samsung in the Indian market for the first time in Q3, 2017. Xiaomi achieved this height by selling the large volume of Mi Smartphone thought the online channels.

Samsung holds a strong offline presence, something which Xiaomi is missing although the company started setting up its Mi Stores in select cities of India but still it will take time to cover all over India. On the other hand, Samsung is looking out to extend their range of Online Smartphone other than Galaxy On series smartphones.

An ET report quotes a company executive as saying, “Samsung wants to extend its lead with Xiaomi which is possible by expanding e-commerce sales while consolidating its presence in offline channels. It will ensure that the 1.5 lakh brick-and-mortar stores selling its handsets are not neglected since Samsung knows it will take time for Xiaomi to build such a vast offline network.”

To pass on the maximum benefit to their customer, the South Korean manufacturer has also reduced the number of trade partners for fulfilling online orders to 2-3 from 10-12 earlier in each region.

“The layers of distribution for online sales are also being cut to ensure margins are better controlled, which can be passed for aggressive pricing,” another executive is quoted as saying in the report.