Luxury marketing strategy for Samsung’s QLED TV

Luxury marketing strategy for Samsung’s QLED TV. June. 26, 2018 08:01. by Ji-Hyun Kim jhk85@donga.com.
Samsung Electronics is targeting “post-China” markets to come up with a solution to the stagnant global TV market. The South Korean IT giant is aiming to significantly increase the sales of QLED TV in emerging markets, such as the Middle East and Southeast Asia instead of saturated markets including the North American and European market. According to the electronic goods industry on Monday, demand for premium TVs, such as high-definition and extra-large-sized TVs, is rapidly increasing in the Middle East and Southeast Asia.

“We’re focusing on luxury marketing especially in Southeast Asia, targeting ‘super rich’ consumers, who are looking for extra-large-sized and ultra-high-definition TVs,” a Samsung Electronics official said. For example, Samsung is collaborating with luxurious brands such as Mercedes Benz in Thailand and partnering with a real estate agency in Indonesia, selling premium TVs tailored to high-priced houses.

Thanks to the luxury marketing strategy, Samsung’s market share in the Southeast Asian market jumped from 29.9 percent in the first quarter of last year to 47.7 percent in the same period this year. The figure rose to 50.5 percent in April. Samsung’s “Magic Screen” function, which offers useful information like weather forecast and music content even when the TV is turned off, has reportedly received positive reaction from consumers at the “Southeast Asia Tech Seminar” held recently in Ho Chi Minh, Vietnam as the weather changes frequently in the Southeast Asian region and there are many K-pop fans there.

Samsung’s premium TVs are gaining popularity in the Middle East as well. Samsung’s market share for extra-large-sized TVs, which stood at 40.9 percent in the first quarter of last year, rose to 57.1 percent in the same period this year and jumped to 60.7 percent in April, becoming the dominant leader in the market. The company’s QLED TV, which was released last month in Dubai, the United Arab Emirates for the first time in the Middle East, is receiving favorable reaction from customers. In particular, Samsung is recommending its customers to put QLED TV in Majlis (“a place of sitting” in Arabic), a living room for visitors.