Samsung to reportedly exit HK's home appliance market

Samsung Electronics is reportedly exiting Hong Kong's home appliance market, ending local sales of major appliances, months after pulling out of the sector in mainland China.

The South Korean technology giant is winding down its home appliance business in Hong Kong, covering refrigerators, washing machines and air conditioners, while its smartphone, tablet, television and computer monitor operations remain unaffected, according to Korea Economic TV.

Samsung Hong Kong told local media such as HK01 and HKET that its Hong Kong business remains stable and that it has been continuously reviewing and adjusting its product portfolio to meet changing market conditions and consumer preferences.

As part of a strategic adjustment, Samsung Hong Kong is focusing its resources on developing televisions, monitors, audio products, commercial displays and mobile communication devices, according to the reports. The company will maintain after-sales service, warranty and repair support for products already sold, continuing to provide professional service to consumers.

A check by MARKETING-INTERACTIVE found that large home appliances such as refrigerators and air conditioners on Samsung Electronics Hong Kong's website no longer have an add-to-cart function, while some were marked as sold out.

MARKETING-INTERACTIVE has reached out to Samsung for a statement. 

Back in May, Samsung stopped selling home appliances in mainland China, including televisions, monitors, air conditioners, refrigerators, washing machines and vacuum cleaners, while its mobile phone business continued to operate as normal.

Samsung will continue to provide after-sales service for home appliances already sold in accordance with mainland China regulations, and customers can still contact local support and repair centres, according to the company's official service notice.

Samsung's decision to withdraw was analysed against the backdrop of Hong Kong's home appliance market, which is estimated to be worth US$1.98 billion, according to Korea Economic TV's report. With GDP per capita exceeding US$50,000, demand for imported high-end appliances is strong. Last year, Samsung ranked third in Hong Kong's refrigerator market with a 15% share, behind Japan's Hitachi and the US's Whirlpool.

The report noted that Samsung faces intense competition from established Japanese and American brands in the high-end appliance segment, while in the mid-range and entry-level segments, price wars among Chinese manufacturers are squeezing market space.

Samsung's May plan to stop selling home appliances in mainland China also covers Hong Kong, but stressed the withdrawal is limited to home appliance sales and does not represent a full exit from the city, with its mobile phone business unaffected, according to the report. 

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