China is one of the most promising and attractive markets for many companies.
There are two reasons for this.
First, it has a vastpopulationof more than 1.4 billion people.
The second is theconstantly growing incomeof the Chinese population, which makes Chinese customers more and more solvent.
Moreover, in 2019, Samsungceased productionin China, moving plants to Vietnam and other countries.
Why does this matter?
The drop in Samsungs market share in the Chinese market was rapid.
I would even say it was too fast.
From 18-20% by various estimates in 2013-2014 to almost zero in 2021.
But whether we want to admit it or not, China is a very important market.
There are about 1.2 billion people in that market, 83% of Chinas population.
State-owned companies are pushing 5G in this market, the fastest-growing market in the world.
For many Western corporations, China is one of the key markets.
That is why Tim Cookoften visitsChina, demonstrating the importance of this market for companies.
It was initially successful, controlling between 15 and 20 percent of the market share in 2013.
It was a real success because China was one of the leading markets for Samsung.
And then something went wrong.
If we turn to history, initially, everything is fine.
At that time, Samsung was associated primarily with affluence and belonging to the middle class.
The Chinese brands take just a couple of years to squeeze out Samsung from the Chinese market.
Each company had its approach.
Simple and cheap smartphones without overpaying for the brand.
BBK Electronics started working with small distributors, even small corner stores.
