Samsung Surrenders To Offline Mobile Retailers: Withdraws Amazon Pay Offer!

Must Read

LinkedIn Finally Rolls Out The Most Requested Feature By Users

Microsoft owned LinkedIn has recently been reported to have revamped its profile section with an amazing feature...

Google Warns Users To Update Their Chrome Browser Right Away!

If you are an active user of the Chrome browser, Google wants you to stop all the...

Indian-Origin IT Firms Woo Donald Trump Amid Re-elections And India Visit!

Amid the United States going through the presidential election, major Indian-origin biggies such as TCS, Infosys and...

Not long ago Samsung India had announced cashback offers in partnership with the Amazon Pay app, the digital wallet of the e-commerce giant Amazon. It was meant for online and offline sales of Samsung’s mobile phones. However, these offers were quickly recalled and the association with Amazon Pay was swiftly severed.

What exactly went wrong? Let’s find out.

Samsung India had to unwillingly recall their promotional cashback offers in association with Amazon Pay as a huge number of offline retailers under the umbrella of India Mobile Retailers Association, aka AIMRA, collectively planned to boycott any and every sale of Samsung’s mobile phone handsets from February 11 to 13th.

Advertisements

The Amazon pay offer on Samsung mobiles required offline customers to have mandatory registration with Amazon. Besides, retailers were also required to register themself with Amazon Pay to pas the discount to customers. This, however, resulted in the fear of losing customers to online eCommerce behemoth Amazon among all retailers.

Why did they take such a drastic step you may ask. Well, our Indian smartphone or mobile retailers have long been hurting from Samsung’s range of smartphones that were launched and made exclusive to online e-commerce platforms such as that of Amazon. This particular move by the Korean giant was perceived as they were trying to prioritise the promotion of e-commerce over retail sales and therefore was naturally not received well by our Indian mobile retailers.

Other major smartphone giants such as Oppo, Vivo, Realme and Xiaomi were quick on their feet to play along with AIMRA’s demands and came to a viable agreement with them by ensuring their pricing, model and promotion between the online and offline channels. Samsung, the Korean giant had to finally bow down to AIMRA’s demands owing to the fact that they haven’t been doing so well amid all the Chinese rival competitors, struggling both at retail and online. There were rumours of Samsung slashing Indian jobs due to the same reason as well, but that was quickly shot down by one of their spokespeople.

What does the future hold for Samsung’s smartphones in India?

Advertisements

Samsung, the Korean tech giant is currently boxed in by some heavy-hitting Chinese rivals, most prominently OnePlus and Xiaomi when it comes to e-commerce channels. The online channels account for 46% of the total smartphone shipments in India as of Q3 2019. The Korean giant have dropped prices for smartphones as well as their televisions by 25-40% since end-2017 to compete with price-aggressive Chinese rivals hoping to keep their previously owner market share which is shrinking day by day. The major price cuts that Samsung has put in motion in the year 2019 was for online-exclusive smartphone models such as the Galaxy M Series and the Super6 Series of ultra-HD smart TVs.

(Source: GraphFarm) The India smartphone market share by top vendors, starting from Q1 2014 to the most recently completed quarter. The list of top five smartphone brands in India in Q4 2019 includes Xiaomi, Vivo, Samsung, Realme, and Oppo.

In India, offline still accounts for around 65% of total smartphone sales in India and therefore this is a domain that Samsung should carefully think about. It most certainly has the potential to give them the winning edge that they are looking for and now it depends upon how do they position their future smartphones in terms of pricing and model to win over Indian customers. We will definitely get to see more cut-throat and brutal competition between all the key smartphone players in the Indian market in 2020 with new smartphone models at various price points and with innovative features. Let us know what you think of Samsung’s range of smartphones compared to others in the comments down below.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Facebook Finally Admits They Are Concerned About TikTok’s Rapid Growth

Facebook is facing the biggest threat since its existence. The social media app...

Digital Payments in India: UPI Stands Triumphant Over Debit and Credit Cards

UPI or the Unified Payments Interface has become one of the fastest-growing payment platforms in India and has draw attention of global...

Backed By Narayan Murthy, Jeff Bezos To Go After Zomato And Swiggy!

Just when Zomato and Swiggy thought that after the acquisition of UberEats by Zomato, the food delivery market in India is going...

India Wants A Bigger Chunk of $100 Billion In Global Taxes Levied On Google, Facebook and Amazon

It has been reportedly found out that India is adamantly pushing for a huge change at Organisation for Economic Cooperation and Development...

Facebook May Have To Pay $3.50 Per Month To Millions of Users?

Almost every internet tech giant, be it Facebook, Google or Twitter, has flourished by optimising and channelising their strategies that are largely...

Google Warns Users To Update Their Chrome Browser Right Away!

If you are an active user of the Chrome browser, Google wants you to stop all the work and update Chrome browser,...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This