Samsung reshuffles China's business by closing 7 outlets

Korean tech giant Samsung Electronics has announced it will reshuffle its business in China and close seven outlets amid sluggish business results in the world's largest smartphone market, according to foreign media reports.

An official from Samsung Electronics said that seven of its sales points were shut down and replaced by 22 new locations that are less comprehensive in terms of products on offer.

The seven sales points were reportedly located in north, east, south, central, southwest, northwest and northeast China.

The spokesperson also said there is no plan for layoffs.

The tech giant’s reshuffle in China came amid continued sluggish sales in its smartphone and home appliance businesses in recent years.

Last year, the market share of Samsung’s smartphone business fell to 5% from 19.7% in 2013. Its shipments dropped to 23 million units from 62 million units during the same period.

The tech giant is losing ground in the Chinese smartphone market due to the rise of Chinese brands, including Huawei, Vivo, OPPO and Xiaomi. Sales of smartphones made by Chinese firms accounted for 87% of total sales in the nation in the second quarter of this year, according to Counterpoint Research.