Samsung Electronics Launches Independent Sales Subsidiary in Singapore to Accelerate New Southern Market Strategy

[Asia Economy Reporter Suyeon Woo] Samsung Electronics recently established a sales corporation in Singapore, reorganizing its overseas operations in the New Southern region. The strategy is to use Singapore, which is sensitive to IT trends, as the hub for the ASEAN region and accelerate the expansion of market share in the New Southern market.

According to Samsung Electronics' audit report on the 20th, in the fourth quarter of last year, Samsung Electronics spun off its Singapore branch, which was under the Asia regional headquarters, into an independent sales corporation. As of the first half of last year, Samsung Electronics had secured two regional headquarters and eight sales bases in the Southeast Asia region.

Through the establishment of the Singapore sales corporation, Samsung Electronics plans to intensify its attack on the ASEAN IT and home appliance markets. The purpose is to establish a sales base to set the New Southern market strategy and lay the foundation for expanding market share based on this.

The launch event of the Internet of Things (IoT) and Artificial Intelligence (AI)-based refrigerator 'Family Hub' held last year at the Samsung Electronics store in Singapore. Photo by Samsung Electronics

Singapore, a global financial and IT hub, has traditionally developed its IT industry, with consumers exhibiting strong early adopter tendencies and sensitivity to trends. The penetration rate of mobile and smart devices is among the highest in the world, and due to high national income, a robust market for high-end luxury brands has also been formed.

Considering these characteristics, Samsung Electronics is targeting the Singapore market focusing on cutting-edge IT devices and high-end brand home appliances. Earlier this year, Samsung Electronics introduced the latest smartphone, the 'Galaxy 21,' in Singapore, and last year, it launched the new refrigerator 'Family Hub' based on the Internet of Things (IoT) and Artificial Intelligence (AI). In 2019, following the UK and Korea, Singapore became the fourth location to open a premium home cinema showroom, 'The Wall Luxury,' making Singapore one of the key target markets for overseas luxury set (finished product) sales.

Recently, the Singapore government declared its plan to build a nationwide 5G network by 2025, which is also seen as a positive factor for Samsung Electronics' IT device sales. Moreover, with the expansion of non-face-to-face demand due to COVID-19, rapid growth is expected in Singapore's IT solutions and terminal device market, which is sensitive to digitalization. According to KOTRA, Singapore's overall information and communication infrastructure is among the top levels worldwide, and the smartphone penetration rate reached 78% as of 2019. The nationwide 4G and LTE penetration rate in Singapore is estimated to be in the 90% range.

An industry insider said, "Recently, in Singapore, 'stay-at-home' consumer goods due to COVID-19 have become popular, and sales of electronic devices for home offices are rapidly increasing," adding, "The strategy to focus on the expansion of the 5G network actively promoted by the local government could also be a new opportunity for Samsung Electronics."