Samsung Electronics Co Ltd (KRX: 005930) Leading US Home Appliance Market in Q4
Samsung Electronics Co Ltd. beat rivals in the race to become the largest player in the US consumer electronics market in the fourth quarter. This is no small feat, given that it has edged out seasoned rivals such as Whirlpool Corporation, according to TraQline research.
The South Korean electronics giant accounted for 16.6% of consumer electronics sales in the United States between October and December last year, relegating the longtime market leader Whirlpool in second place with a market share of 15.7%.
TraQline, which is owned by Stevenson Company, conducts market research on a quarterly basis. The surveys involve asking consumers about five consumer electronics devices such as dryers, washing machines, dishwashers, refrigerators and ovens. The survey does not take into account vacuum cleaners and air conditioners since these items are mainly purchased by companies, while the former are produced by several small producers.
Market share amounts to 14.9 percent
Samsung’s market share in the US consumer device market was 14.9% in 2015 as a whole, compared to 16.4% for Whirlpool. General Electronics was third with a market share of 14.3 percent, while LG Electronics Inc. followed with 13.5 percent.
Much of the secret to Samsung’s exploits lies in its strategy to reach the high-end segment of the US consumer electronics market. The South Korean company, which also makes other sophisticated products such as Samsung Galaxy smartphones, last June launched the Chef Collection line of its luxury consumer electronics. The brand includes an oven, microwave, dishwasher and refrigerator. The decision was a success as all the products recorded meteoric sales.
Samsung has been forced to increase the size of some of its devices such as the washing machine, refrigerator and dryer in order to satisfy the average American. consumer appetite for large devices.
A 2015 consumer satisfaction survey by JD Power showed that Samsung’s front-loading washing machine and ‘French door’ refrigerator was one of the products that dominated the repeat buy list over the past two years. .
The rivals are not left out …
Samsung’s strategy to tap into the high-end market has been simulated by competitors such as LG Electronics, which has launched its “Signature” line of high-end consumer electronics which includes refrigerators, high-end televisions. range and washing machines.
However, Samsung’s success in the US consumer electronics market will come at a cost, given the recent behavior of disgruntled US rivals who have resorted to courts and government petitions to maintain their market share. Last week, the company’s smartphone division lost a business to Apple Inc. on patent issues. In December, Whirlpool called on the US government to impose taxes on washing machines made by LG and Samsung in China. Whirlpool claims that Samsung and LG Electronics have increased their market share in the United States by selling their washers at retail prices below the cost of production.