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Permalink Reply by Steven S. Bammel on November 1, 2011 at 1:46pm

I had heard about the cheap TVs, but didn't know that they weren't LG or Samsung brands. It's interesting that Chinese makers are getting a new channel into the Korean market. It was just a matter of time anyway, I suppose...

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Permalink Reply by Simon Hoggett on November 1, 2011 at 3:40pm

 I don't know if this is eating at Samsung/LG's market share, as much as its capitalizing on the lower income bracket that couldn't afford to buy the latest 3D or Smart TVs. I'd also be interested in learning if there was a specific promotion policy used to lower the price during this initial introduction period. (eg. using a certain credit card) to lower the price of the TVs.

 

I could be wrong since it was reported that Samsung's 3D TV market share has dipped in recent months . But,  I remain skeptical until the industry figures are released. Guess we will find out over the next few months . 

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Permalink Reply by Cory Olson on November 2, 2011 at 2:55pm

Saw the no-brand model at E-Mart late last week (it literally just says LED TV on the box without a single brand identifier). From what I could make of the product display, it's a short time deal and the promotion will end (likely when they run out of whatever bulk volume they purchased from the manufacturer). Personally, I would think this is more about the hypermarkets competing with each other, more so than big domestic brands (in fact I doubt they didn't tell Samsung and LG of their plans beforehand) and they are selling these at razor-thin margins to drive in customers.

Also, perhaps an ominous sign, the display model was already broken when I was there.

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Permalink Reply by Mike Park on November 4, 2011 at 1:04am

Some analysis, insight and information...?

• Apparently, these non-LG/Samsung LED TVs - and publicity - are attracting a lot more customers to visit their stores. Thus, the argument is that such offers are increasing the pie size rather than taking away market share from SS/LG. In other words, those households (invididuals) who have not yet purchased an LED TV (or those who want a second set) are now seriously (re)considering to buy. 
• In very rough terms, the price for TVs in Korea are about 30~40% higher than the price of TVs in the United States. In other words, and for example, you can purchase a 32" Samsung LED TV at Best Buy for $449.99 (regular price 529.99). Whereas in Korea, Samsung did not even sell a 32" version because they wanted to initially push larger (more profitable) screens to consumers (higher margin). If you go to the Best Buy (eStore, online store), you will find a Samsung 22" LED TV being sold for under $300.00. They (Samsung LED TVs) are not priced this way in local Korean store.
• Foreigners are often unaware of Korea's local wedding custom. In other words, and although these customs are changing to become more practical, the bride is on the hook for buying (bringing new) electronic applicances (also brand new furniture and everything else) to fill their new home, whereas the groom will be mostly responsible for finding (paying for) a place to live. Hence, the cost of refrigerators, air conditioners, washing machine, kimchi-refrigerator and TVs are in many cases outrageously high to take advantage of these consumers who would be starting their live in an ackward situation should she bring something/anything less than what is considered highest (or near high range) priced goods. What this means is that you (as a consumer) need to say away from these high-end items which are priced to target newly weds - and buy the more simple (modest) products.
• A few years ago (okay - maybe many years ago), Sony was on top of world. But ever since they began making their products in South East Asia (Malaysia), their magic (grasp of the market) began to disappear. However, even today I think the majority of consumers across the world still think of Sony as the top rated TV manufacturer - their magic (and greatness during their peak age of the Walkman and Trinitron TV) still lives on.
• At Hi-Mart (a Korean electronic store), my friend bought a HAIER 22" LED TV for under $300.00 (USD) / 299,000 KRW - a promotional price. This friend told me that the speakers were very bad (poor sound quality), picture quality was great. Haier is a Chinese (made in China) brand; and after-service (warrenty) is probably not as good as local Korean brands.
• Discount-store (or Hypermarket) created-goods/brands are typical called PL (Private Labels) since the stores will create, distribute and sell these (custom ordered) products - their products which are not publically sold elsewhere. This is popular with clothes and food. Hence, the story of retailers using the own gig/brand to sell at a lower price is nothing new.
• LG Electronic's stocks tumbled this week whereas the more aggressive Samsung looks to be a winner this year.
• http://www.bloomberg.com/news/2011-11-03/lg-electronics-to-sell-1-0...
• If you're not frugal (not on a budget) and want to get a high-end set, you may want to check out Bang & Olufsen's BeoVision series (Home Cinema).
• One other note. If you visit a Sony store in Korea, you might get a 40% discount if you buy a "displayed-in-store" model/set. The downside is that typically these models on the shop floor have already been turned on (highly use) for about 6 months. So, it wouldn't hurt to ask the store manager if (or where) you can get the 40% discount on these displayed models.

All in all, the quality of TV have improved dramatically and now 3D seems to be popular. As we continue to see "convergence" of Computer Screens, Mobile Phone displays and TVs...how future products (for example, Smart TVs) evolve will certainly be very interesting to watch.

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Permalink Reply by Mike Park on November 4, 2011 at 8:05am

Shrikanth,

 

Here's an article which talks about the Smart TV market. In the article, new entrants (another type of potential future players) such as Google TV and the talk (rumor) for iTVs which may threaten future market share of Samsung/LG - FYI.

 

http://koreajoongangdaily.joinsmsn.com/news/article/Article.aspx?ai...

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Permalink Reply by Steven S. Bammel on November 4, 2011 at 9:23am

Wow, Mike. That's a tremendous contribution to the discussion. Thanks!

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Permalink Reply by Shrikanth S on November 5, 2011 at 1:55am

Mike,

     Thanks for the comprehensive response.

      About Smart TV market i would think Samsung and LG have a heads up compared to what happened with Smart Phones. But we can never be certain 

 

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Permalink Reply by Simon Hoggett on December 6, 2011 at 11:22am

Here's a follow up to that article, with another TV manufacturer entering the market via the website Auction

http://koreajoongangdaily.joinsmsn.com/news/article/article.aspx?ai...

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Permalink Reply by Ryan Huddleston on January 16, 2012 at 1:05pm

This is a great summary, exactly the kind of insight foreigners (like me) here need. Thanks Mr. Park

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Permalink Reply by Mike Park on January 14, 2012 at 5:35pm

Reported today is another reason for why prices are higher for local consumers....according to the FTC (Fair Trade Commission).."pricing-fixing"...and perhaps give speculative grounds on how/why others can price lower than Samsung and LG.

http://english.chosun.com/site/data/html_dir/2012/01/13/20120113014...

The local market share will most probably not change this year. But with more competition, from other brands/companies, consumers may eventually benefit.

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Permalink Reply by Shrikanth S on January 16, 2012 at 12:28am

Yes, i used to wonder how the same Samsung TV (Made in Korea) was cheaper in India compared to Seoul few yrs ago.. So many koreans consumers paid extra for a local product , while same products were cheaper outside ..

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Permalink Reply by Steven S. Bammel on January 16, 2012 at 1:34am

Several years ago when Hyundai released the Genesis in the US, people were buying them there and shipping them back to Korea because it was cheaper than just buying them in Korea.

This is a long-standing issue with Korean manufacturers and goes way back to the early days of industrialization where the chaebol were given a protected local market at higher prices to help subsidize their efforts at promoting exports.

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