Global IT companies are flocking into the B2B market as the market is growing at a fast rate and, unlike the B2C market, ensures stable sales growth once clients are secured.
In the B2B market where reliability matters, the low price challenge of Chinese brands are having a limited impact. Against this backdrop, Samsung Electronics and LG Electronics are placing more focus on the B2B market in recent days.
In a letter recently sent to shareholders by vice chairman of Samsung Electronics, Kwon Oh-hyun said, “Price competition and oversupply would escalate in Samsung’s flagship markets, including smartphones, TVs and memory chips. We will improve our profitability by focusing on new businesses like contents and B2B services.”
Samsung Electronics launched its own B2B brand “Samsung Business” last year as a way to strengthen its B2B sales activities. Samsung aims to offset the declining sales in the areas of smartphones and TVs by attacking the B2B markets in the areas of education, retail, hotel, logistics and health care.
This strategy is already paying off. Samsung signed a deal last year with a European cruise operator MSC Cruise to supply a package of TVs, smartphones, VR head mount displays, medical equipment, and printers.
