Samsung Electronics has decided to halt sales of home appliances and TVs in China. According to industry sources on the 6th, Samsung Electronics de...
Samsung Electronics announced on the 3rd that it will run a global advertising campaign for the all-in-one washer-dryer ‘Bespoke AI Combo’ in Korea·the United Kingdom, using the film ‘The Devil Wears Prada 2’.
The photo shows the ‘Bespoke AI Combo’ outdoor advertisement that Samsung Electronics is running at Shinsegae Square in Myeong-dong, Seoul. Provided by Samsung Electronics Samsung Electronics has decided to halt sales of home appliances and TVs in China.
According to industry sources on the 6th, Samsung Electronics decided to restructure its mainland China operations and to withdraw some businesses, including home appliances and TVs. Samsung Electronics notified distribution channels and partners in China of this policy.
Recently, rising raw material and component costs have eroded profitability in the appliance business. Last year, the Visual Display and Digital Appliances divisions posted a loss of 200 billion won.
In the first quarter of this year, it recorded 200 billion won in operating profit, but within Samsung Electronics, opinions emerged that a structural overhaul is needed in light of Chinese companies expanding market share and the weakening future competitiveness of the TV business.
In fact, the China sales subsidiary's net profit last year was 168.1 billion won, a 44% decrease compared with the previous year's 370 billion won. Recently, the DA division held a management briefing for employees and shared a restructuring plan to outsource certain appliance lines, including dishwashers and microwave ovens.
Samsung Electronics also decided to close its Malaysia plant, a key overseas production base, and conducted a management review of the Korea unit responsible for domestic sales and operations of TVs, home appliances, and smartphones. On the 4th, the head of the VD division was changed from President Yong Seok-Woo to President Lee Won-Jin.
However, Samsung Electronics plans to continue its mobile, semiconductor, and medical device businesses in China. In particular, it plans to target the Chinese mobile market with artificial intelligence .
In accordance with China's consumer protection law, it will also provide free or paid after-sales service . 한글기사 원본
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