Samsung Electronics is making repeat purchases from 175 million customers in India through a new cashback credit card, according to a senior executive. This is a move to increase sales in the critical market where it was once the top smartphone seller.
With India''s festive season underway, the South Korean electronics business on Monday launched a new credit card with India''s Axis Bank to offer a 10% discount all year round to Samsung customers.
Generally, discount offers on e-commerce websites such as Amazon and other brick-and-mortar stores are available only during the festive season or during sales.
"We are talking about 175 million existing customers, which is our current Samsung mobile network. This entire base is a possibility," Samsung''s senior vice-president told Reuters.
Samsung, which claims to be India''s largest consumer electronics company, sells everything from smartphones to washing machines in the country. However, about 72 percent of its total India income of $9.3 billion in 2020-21 was made from smartphones.
Samsung''s move to offer cashbacks to customers through its new card partnership comes after losing its smartphone market share over time to Chinese competitors such as Xiaomi, Oppo, and Vivo, who offer many low-cost smartphones in the world''s second largest mobile market.
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Samsung had a 26 percent share of India''s smartphone market in the second quarter of 2020, according to Counterpoint Research.
"Samsung is shifting aggressive on the financing side of things. Financial help plays an important role in helping people make smartphone purchases," said Counterpoint analyst Tarun Pathak.
2022 Thomson Reuters