Samsung Electronics Co. expands the consumer credit system launched in India three years ago with the aim of boosting mobile sales in the world’s second-largest smartphone market.
The South Korean tech giant records record sales of R5 billion ($ 65.8 million) a month through its Samsung Finance + credit service, which allows consumers to pay for the smartphone in installments. That speed is likely to double the company’s sales for the channel this year, according to Raju Pullan, head of Samsung mobile business in India. The financial system has generated about $ 30 billion in 2021 sales.
The service has proven to be popular with Indian retailers and Samsung, who sell tools online and through a network of 180,000 stores across the country, looking to increase the availability of its credit system, Pullan said. It is currently supplied in 50,000 department stores, which include small towns and rural markets as well as major cities. The company now processes an average of 300,000 loan applications per month. Potential customers need to pass patent checks and credit eligibility to qualify.
Samsung, once a top player in the Indian-dominated smartphone market, has been ripped off by Chinese rivals such as Xiaomi Corp. and Realme owned by BBK Electronics Corp., due to their low prices, large batteries and very powerful cameras. The revenue of the mobile business, which accounts for about 70% of total sales in India, stood at more than 550 billion rupees by the end of March 2021, according to the legislation.
The company plans to launch five new A-series smartphones this year, three of which will include 5G wireless connectivity, essential for the South Korean electronics maker. It will focus on the market share of 20,000-45,000 rupees, according to the local superintendent.
“We are seeing strong growth in the 5G sector across India and that will be at our core,” Pullan said. “India is one of the biggest 5G players for us.”