I came across this article that E-mart, Homeplus etc maybe selling more LED TVs by pricing it 30-40% lower than Samsung, LG etc. http://english.chosun.com/site/data/html_dir/2011/10/28/20111028007...
Maybe they are made in China or Taiwan ..Is this a new trend?
How do you see this affecting Samsung and LG local market share?
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 .
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.
Some analysis, insight and information...?
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.
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.
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
Here's a follow up to that article, with another TV manufacturer entering the market via the website Auction
This is a great summary, exactly the kind of insight foreigners (like me) here need. Thanks Mr. Park
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.
The local market share will most probably not change this year. But with more competition, from other brands/companies, consumers may eventually benefit.
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 ..
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.