Samsung to Open 4000 Stores Across India

[Anonymous]

Samsung to Open 4000 Stores Across India
By Times of India
KOLKATA: Samsung India is looking to open 3,000-4,000 exclusive outlets across Indian towns with a population of less than 1,00,000 as part of its strategy to boost sales in low-penetration, but fast-growing markets for electronic devices.

The Korean multinational is No. 1 in India's smartphone and flat-panel TV markets, but has been facing increasing competition from rivals Apple, Sony, Micromax and Karbonn. 

Vineet Taneja, Samsung India's country head for mobile phone and digital imaging divisions, said the electronic goods maker will set up 1,000 such stores this year in tier IV and V markets. It has already set up 10 such stores on a pilot basis, he added. 

"It is indeed a big challenge since modern retailing is yet to make any entry in these small towns and villages, and at best, there will be one small street that is the retail hub," Taneja said. 

"We have value-engineered our existing brand store format by lowering fixture costs so that the owner can break-even these stores in one-fourth the time than the stores in metros." 

According to Taneja, these 300-400 sq ft stores will have limited inventory and demo units, which will lower operating costs, and will be serviced by distributors on a daily basis. 

"We expect good sales of the entry-to-mid-level smartphones as well as TV sets, which will drive volume market share, and are confident that some consumers would even buy flagship models such as Galaxy S5," he said. 

Samsung runs over 2,000 exclusive brand stores in India under the franchisee model, of which 1,100 are of the Smartphone Cafe format, where only smartphones and tablets are sold. Smartphone Cafes account for 15-20 % of Samsung's mobile phone sales in the country, according to industry estimates.

Samsung to Open 4000 Stores Across India
By Times of India
KOLKATA: Samsung India is looking to open 3,000-4,000 exclusive outlets across Indian towns with a population of less than 1,00,000 as part of its strategy to boost sales in low-penetration, but fast-growing markets for electronic devices.

The Korean multinational is No. 1 in India's smartphone and flat-panel TV markets, but has been facing increasing competition from rivals Apple, Sony, Micromax and Karbonn. 

Vineet Taneja, Samsung India's country head for mobile phone and digital imaging divisions, said the electronic goods maker will set up 1,000 such stores this year in tier IV and V markets. It has already set up 10 such stores on a pilot basis, he added. 

"It is indeed a big challenge since modern retailing is yet to make any entry in these small towns and villages, and at best, there will be one small street that is the retail hub," Taneja said. 

"We have value-engineered our existing brand store format by lowering fixture costs so that the owner can break-even these stores in one-fourth the time than the stores in metros." 

According to Taneja, these 300-400 sq ft stores will have limited inventory and demo units, which will lower operating costs, and will be serviced by distributors on a daily basis. 

"We expect good sales of the entry-to-mid-level smartphones as well as TV sets, which will drive volume market share, and are confident that some consumers would even buy flagship models such as Galaxy S5," he said. 

Samsung runs over 2,000 exclusive brand stores in India under the franchisee model, of which 1,100 are of the Smartphone Cafe format, where only smartphones and tablets are sold. Smartphone Cafes account for 15-20 % of Samsung's mobile phone sales in the country, according to industry estimates.

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April 10, 2014 at 10:52 AM