Samsung plans range of exclusive online products

NEW DELHI: As part of its overall restructuring process, Korean electronics giant Samsung is planning to launch an onslaught against the likes of Xiaomi, Motorola, Micromax and Vu, who have tasted success in India with their online models. The company is looking to design and manufacture mobile phones and consumer electronics such as TVs, specifically for online sales. In future, it may also launch a company-owned online sales channel, said people familiar with the matter.

Meanwhile, Samsung India is looking to hire an online category head who will report to Asim Warsi, VP, IT, marketing and mobile, Samsung India. A Samsung India spokesperson did not reply to an emailed questionnaire.


“Despite online sales being a small part of its overall business here, the company has understood its potential,” said a senior Samsung India executive. “People who come online to shop for phones are mainly millennia’s, who have specific requirements and buy phones that are affordably priced. Phone makers will have to address those needs to be successful.”

In India, where nearly 100 million smartphones were sold last year, around 30% of them were sold online. Mobile phone sales make up for around 11% of total e-commerce sales.


“While modern retail has decent penetration in other parts of the world, in India, mobile phone makers faced a unique situation with smaller towns and cities not having enough retail points. E-commerce provided them instant distribution reach,” said Tony Navin, senior VP , partnerships and strategic initiatives at online marketplace, Snapdeal.

“Phone makers who only sell online, could save money on distribution, marketing and brick-and-mortar retail costs and pass the savings on to consumers.” Amit Boni, GM of Motorola India, attributes success of Lenovo-owned handset maker to its online strategy here. Along with phone makers including Xiaomi, OnePlus One and Meizu, it managed to create pent up demand online in a very short period.