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Samsung Electronics is reportedly preparing to withdraw from Hong Kong’s home appliance market, ending local sales of major appliances including refrigerators, washing machines and air conditioners, just months after exiting the sector in mainland China.
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According to Korea Economic TV, the South Korean technology giant is winding down its home appliance business in Hong Kong. Its smartphone, tablet, television and computer monitor operations will not be affected.
A check by The Standard found that major appliances, including refrigerators and air conditioners, were listed as out of stock on Samsung’s Hong Kong website, with no option to add them to the shopping cart.
Industry sources cited by the report said Samsung’s Hong Kong subsidiary began preparing for the withdrawal one to two months ago. The move follows the company’s announcement in May that it would stop selling home appliances in mainland China.
Hong Kong’s home appliance market is estimated to be worth 2.7 trillion won, or about HK$15.83 billion, with relatively strong demand for premium imported products.
However, intense competition has weakened Samsung’s position in the market. The company accounted for about 15 percent of local refrigerator sales last year, trailing Japan’s Hitachi and US appliance maker Whirlpool, according to the report.
Korea Economic TV said Samsung was facing pressure at both ends of the market, with established US and Japanese brands competing strongly in the premium segment and mainland Chinese manufacturers putting pressure on prices in the entry-level and mid-range markets.
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