Olympic Marketing Gone Astray... The Fading Dream of Galaxy S20

Tokyo Olympics Postponed by One Year, Promotional Stage Disappears
Galaxy S20+ Olympic Edition Sold Only in Japan
Japan Misses Opportunity to Reverse Market Share with 5G Commercialization

[Asia Economy Reporter Han Jinju] With the Tokyo Olympics postponed by one year, official sponsor Samsung Electronics is sighing deeply. The Olympics, held every four years, have been the best stage for promoting Galaxy smartphones to the global market. Samsung Electronics, which has a low market share in Japan, had secretly hoped to turn the tide with this Olympics, but that dream has been postponed by a year.

According to industry sources on the 26th, Samsung Electronics will sell the Galaxy S20+ Olympic Edition from June in collaboration with Japanese mobile carrier NTT Docomo. Samsung Electronics also sold the Galaxy S3 and S7 Olympic Editions during the 2012 London Olympics and the 2016 Rio Olympics. However, with the postponement of the Tokyo Olympics, this product has become a "doomed edition."

◆Galaxy that decorated the Olympic opening ceremony... not this year

Samsung Electronics started as a local sponsor for the 1988 Seoul Olympics and signed a contract to act as an official sponsor until 2028. It is the only domestic company among the 13 International Olympic Committee (IOC) official TOP (The Olympic Partner) sponsors. Past Olympic opening ceremonies have naturally served as a stage to promote Samsung Electronics' Galaxy smartphones. At the Rio Olympics opening ceremony, athletes filming the event with the Galaxy S7 Edge Olympic Edition were broadcast worldwide. At the 2012 London Olympics opening ceremony, the Galaxy S3 and Galaxy Note made a surprise appearance, marking their role as devices that connect and communicate between the internet and people.

Samsung Electronics Galaxy S7 Edge Olympic Edition

The marketing effect of the Olympics is directly reflected in performance. According to Gartner's survey in the third quarter of 2012, when the London Olympics took place, Samsung's mobile phone market share increased by 4.2% year-on-year to 22.9%. In the first half of 2016, when the Rio Olympics were held, Samsung's smartphone market share in Brazil soared to 54%. According to consulting firm Wagner Edstrom, Samsung Electronics ranked overwhelmingly first in brand exposure among Olympic sponsors.

This year is the first year of 5G commercialization in Japan and a golden opportunity to promote the Galaxy S20 using Olympic content. Japanese carriers started 5G services from the 25th, led by NTT Docomo, and the Galaxy S20 is scheduled to be released in May through NTT Docomo and KDDI. Samsung Electronics, which aimed to increase its market share in Japan through this Olympics, is inevitably disappointed. According to market research firm StatCounter, Samsung's market share in Japan was 6.36% in 2019, ranking third after Apple (69.31%) and Sony (7.01%).

Galaxy S20 falters after meeting COVID-19

The global smartphone market contraction due to the novel coronavirus disease (COVID-19) is also unfortunate for Samsung Electronics. According to market research firm Strategy Analytics, global smartphone shipments in February decreased by 38%. Samsung Electronics recorded shipments of 18.2 million units in January, down 1.9 million units. Although it performed better than Huawei, which saw a 70% month-on-month decrease, the outlook is not bright. Samsung Electronics stores operating in the US, Canada, and other countries have all suspended operations. US carriers are discounting the Galaxy S20 and Galaxy S20+?which were released less than a month ago?by $200 at online malls such as Amazon and Best Buy.

Among the Galaxy S series, the best-selling Galaxy S7 sold 50 million units in its first year alone, but the subsequent Galaxy S8 and S9 are estimated to have sold between 34 million and 38 million units, and the Galaxy S10 about 37 million units. Due to initial sluggish performance, it is forecasted that this year’s sales will be around 35 million units.

An industry insider said, "This year was an opportunity to boost the Galaxy S20 and others using the Olympics, as 5G service starts in Japan, but the timing was off. The big challenge for Samsung Electronics is what product they will bet on a year from now."