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Was Samsung ever low end? Yes. Kind of. Posted by Snowmobile [Email]  (#686)  [Profile/Gallery]
(more from Snowmobile) on Tue, 1 Apr 2014 07:06:29
In Reply to: Samsung die-hard here., B Millar  [Profile/Gallery]
, Mon, 31 Mar 2014 12:00:54
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You're probably young enough to not remember the lower end Samsung stuff of the past (LG even more so). They've been well established for many years, but I still wouldn't call their products "high end" or iconic... They do a good job producing very mainstream products. Much like Panasonic and Sony of a decade or 2 ago. Nothing wrong with that. When I was in grad school, the Japanese were ahead of the Koreans in flat panel display technology. So when the Koreans would copy what Sony et al. were doing at 15", the Japanese would go bigger, or higher density, etc... Now the tech has evolved so much that it is almost irrelevant, and the Koreans have made so much $$ selling the cheaper copies that they have their own good R+D and have probably surpassed the Japanese technologically as well as in terms of market share. This is the business model. Recognizing that the majority of the population is happy with cheap junk, make cheap junk to start and move up the food chain by killing your competitors, raising your prices once they are gone.
An interesting thing about their appliances. Talking to a remarkably open-speaking (and jaded?) sales rep... apparently Samsung currently sells their low cost washers and driers at a loss. Their objective is to drive everyone out of the market. To a large extent it is working. They have completely killed any profitability in the washer and drier market except at the high end (Miele). Bosch is apparently leaving the North American market to a large extent as a result (they no longer produce large washer/driers, only the compact models which are not popular here). They can not compete on price with cheap Korean design and Chinese labour (that is where the Samsungs are mostly built). What I have heard is that the Samsungs work well, last ok, but are less repairable than some of the other brands. That might be incorrect, but it is the sort of thing that goes hand in hand with the strategy they are pursuing. They are pretty good value for the $ though... kind of like Hyundai!
Interestingly also... many now view LG washer/driers as high end products (probably a step above Samsung). A decade and a half ago, when the Bosch compact front loaders were one of the few front loading options in north america, LG came out with a pair that looked really really similar... right down to the font! The internals of course were different and they weren't made in Germany and they undercut on price... The only real difference on the outside was that they put on a (mostly unnecessary) digital display. Asian companies just don't understand minimalist design... but anyway, overall, the darn things held up pretty well, and that was the first big step to win market share.
Ultimately, the thing's an appliance, so who cares... but the business strategy is interesting. Business follows market demand, and people, at least in North America, don't really care much beyond short term value (as in "is it cheap") anymore... buying something that lasts, or is easy to repair (ie has long term value), is really not a big consideration for the majority. We live in a disposable society. To the majority, a car is an appliance. After 4 years it is disposable. No wonder Kia is doing great! I have no doubt that they'll sell this k900 in ok enough numbers to the same kinds of folk who bought the Amante: not wealthy enough to own a 7 series, but want the look. Not for me, but who am I to judge?
->Posting last edited on Tue, 1 Apr 2014 07:10:59.
, Mon, 31 Mar 2014 07:59:43
, Mon, 31 Mar 2014 10:47:13, Mon, 31 Mar 2014 11:39:11, Mon, 31 Mar 2014 15:07:09, Mon, 31 Mar 2014 12:00:54, Tue, 1 Apr 2014 07:06:29 <-- Viewing This Message
, Mon, 31 Mar 2014 14:03:19, Mon, 31 Mar 2014 14:10:30, Mon, 31 Mar 2014 06:57:14, Mon, 31 Mar 2014 05:25:41, Mon, 31 Mar 2014 05:24:09
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