Samsung had a loyal group of users in China, but its way of dealing with the latest security scare has shocked their loyal follower, says retail analyst Ben Cavender to AP. Samsung did not recall its Note 7, despite possible igniting batteries, and recalls in the rest of the world.
Chinese consumers are unusually alert to safety issues following an avalanche of scandals over shoddy or fake food, medicines and other goods. They also are sensitive about being treated as well as Western consumers.
“I think consumers are pretty unhappy with Samsung,” said Ben Cavender of China Market Research Group. “Consumers start to feel like they are being taken advantage of, that they are not being accorded the same respect here as they are abroad.”…
Working in Samsung’s favor is the fact that phones are sold through retailers in China instead of carriers. That allows users to switch brands quickly and new competitors to enter the market.
“In any given month, a brand is going to leapfrog another brand and come up with a brighter screen or bigger battery of faster charging,” said Cavender…
Longer term, the Note 7 in China is likely to “take a major sales hit,” said Cavender.
“People who want to buy a phone are going to switch to Apple or to a local brand like Huawei,” said Cavender. “Or if they want a Samsung, they probably are going to wait for the next generation, because they don’t want to take the risk that they will get a faulty product.”
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