In order to achieve a breakthrough in sales, Samsung Electronics adjusted its business strategy in China

Driving China on December 20, 2021 news, according to foreign media reports, according to industry insiders, under the direct supervision of vice chairman and CEO Han Zhongxi, Samsung has set up a new China team. This marks a change in Samsung's strategy to re-enter Asia's largest market, which is already dominated by local manufacturers.

Industry insiders said that Samsung Electronics' newly established special team, called China Business Innovation Team, is dedicated to various businesses from mobile phones to semiconductor chips, with the aim of achieving sales breakthroughs in one of the world's largest IT markets.

The new team consists of two divisions, one supporting HUMAN RESOURCES and marketing, and the other with members from the mobile devices, home appliances, displays, and semiconductors divisions. The team will report directly to vice chairman Han Jong-hee, who heads the newly merged mobile device and home appliances division DX (Device Experience).

It is understood that Samsung declined to confirm the team's launch.

China has always been a key market for Samsung, accounting for the largest share of its total sales. In the third quarter of this year, China accounted for 30% of the company's total global sales, followed by the United States with 29%, other Asian markets and Africa with 16.4%, and Europe with 12.6%.

In an executive reshuffle earlier this month, Han Jong-hee, who leads Samsung's TV business, was promoted to vice chairman. He is now responsible for the DX division, which includes visual displays, digital appliances, health and medical devices, MX (mobile phones and tablets), and networking businesses.

In the past few years, Samsung's development in China has not been smooth, especially in the smartphone business, which has a market share of less than 1%. For Samsung, which has the largest share of the global smartphone market, this is disappointing.

In addition, supply chain management issues have also affected the establishment of Teams in China. Samsung operates a memory chip manufacturing plant in Xi'an and a chip packaging plant in Suzhou. In particular, it is worth mentioning that the Xi'an plant is Samsung's only overseas memory chip production facility.

There is growing speculation that Lee Jae-yong, the actual head of Samsung, may soon visit China. After being released on parole in August, he flew to Canada, the United States and the Middle East in search of new business opportunities in the post-COVID-19 era.