Overhaul: Samsung redistributes distribution network

Tech giant splits local market into two regions, appoints new distributors.

Our Correspondent March 24, 2014
Samsung decided to split its distribution network in two regions to fix the loopholes in the company’s distribution network, the officials said. PHOTO: REUTERS/FILE

KARACHI: In response to customer needs in the ever-growing electronics industry in Pakistan, Samsung Electronics Company Limited has overhauled its distribution network. The South Korean technology giant has appointed multiple distributors for Northern and Southern regions as it plans to expand its sales in the country.

“Pakistan is a very big market and for a brand like Samsung, it was important to have two distributors to justify the needs of customers,” MRM Traders’ Chief Executive Officer Mohammed Rauf Moosa said in a press conference at Mövenpick Hotel on Monday while making a formal announcement about MRM’s appointment as a distributor of Samsung’s consumer electronics business.

Samsung decided to split its distribution network in two regions to fix the loopholes in the company’s distribution network, the officials said. It, therefore, appointed two new distributors. The move came in response to the issues the company had been facing because of a single distributor, according to the official.

“The previous distributor was not working on the product’s potential,” Moosa said, while responding to a question. With the new setup, he said the aim is to double the sales.

MRM will be managing distribution and after-sale services for Samsung’s electronics business – excluding mobile phones – in the Southern region that covers Sindh and Balochistan. The sales and distribution for North and Central business will be looked after by Smart Zone.

The decision is in line with the global trends, Moosa said, whereby every big brand operating in a large market adopts multiple distributors to expand the business.

“We’ll open 20 after-sale service centers in Karachi, Hyderabad, Sukkur and Quetta,” Moosa said, adding the company is also planning to expand its manufacturing facility located in SITE industrial area.

The changes in Samsung’s distribution model come at a time when the company is planning to introduce a whole range of new products sometime in the first half of fiscal 2015.

The Korean technology giant is going to introduce an upgraded version of its smart TV range, according to officials. “We’ll provide a much advance technology for our new products and at the same time reduce the prices of smart TV dramatically so everyone can afford this product,” Moosa said.

The company previously faced complaints regarding after-sale service centers. To this, Moosa said, there were now five service centers in Karachi to deal with customers as opposed to the only two service centers the company previously had.

The officials said the new setup of multiple distributors would help the company expand its product reach.

“I believe MRM is ready to deliver good services across Sindh,” the company’s Business Manager for Consumer Electronics HD Lee said.

Published in The Express Tribune, March 25th, 2014.

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Haroon Rashid | 7 years ago | Reply

Mr HD Lee you now have an edge in Pakistan market with LG almost from the market due to the wrong decision of distribution and PBA advertising scam, which sank the company reputation in the market place. Companies burn the marketing budgets towards advertising on TV and burn all the money for kick backs. Hence they are not visible on TV at all. Samsung with competition from China as Haier, HVAC. Samsung has a strong brand, with strength in HVAC, Smart TV., which is now commoditised by the Chinese brands almost at the price of the ordinary entry level TV. My humble suggestion to Samsung brand promotion in Pakistan market is to pass the lower price to the consumer instead of wasting the money on TV and coming up with a premium brand. Come as a large market share, at the lowest price in the market, with putting the lowest price. Enjoy your bumper crop in the market.

Khan | 7 years ago | Reply Reduce your prices as many want to buy a trusted and quality brand as Samsung
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