Samsung Electronics is expanding its European home appliance market presence with a marketing strategy that allows consumers to experience its artificial intelligence features.
The strategy in practice can be seen at a Samsung store at an outlet of Saturn, Germany’s biggest consumer electronics retail chain, in central Berlin’s Europa Centre.
At the store, Samsung occupies a large area near the main entrance of the outlet, with an exhibition showing how the company’s AI-powered appliances can benefit consumers’ lives.
During a visit to the store on Sunday, store managers focused on demonstrating how Samsung’s AI-powered SmartThings connectivity platform streamlines home control by connecting the company’s electronic appliances and sensors, door locks, curtains and other third-party peripheral devices.
Through SmartThings’ Map View function, users can monitor the status of connected devices at home on their TV screens. For example, if the doorbell rings, users can monitor who is at their door and open it directly from their TV.
In addition, the store prepared several scenarios that can happen in the daily lives of users to give them a better understanding of how they can use AI-powered appliances in those situations. This was somewhat different from conventional consumer experiences at electronics stores where products are exhibited by segments and sales managers explain their updated specs and functions.
“Compared to previous marketing methods, it is more difficult for sales managers to induce customers into AI experiences, but customers are showing favourable responses,” said Choi Soung-min of Samsung Electronics Germany’s consumer electronics marketing division.
“Due to the IFA 2024 exhibition, consumers in Berlin are showing strong interest in our products, and some of them came here after visiting Samsung’s booth at the show. No brand has set up this kind of experience zone,” he stated.
Samsung showcased a series of AI-embedded home appliances at the IFA 2024 consumer electronics show from Friday to Sunday in Berlin. Unlike other established home appliance giants, Samsung highlighted the experience that consumers can have with its AI appliances during the exhibition, rather than showing off new technologies and upgraded specifications.
Including the Saturn store, Samsung is running two experience-themed stores in Berlin. Based on experiences and consumer responses gained at these stores, Samsung said it plans to apply similar marketing strategies in other stores in Germany.
“Previously, Saturn placed big TVs or other products that have a high turnover rate at its main entrance,” Choi said. “The fact that Saturn allowed us to set up an experience zone shows that the electronics chain also believes the zone contributes to Saturn’s customer inbound traffic, and it does contribute.”
Samsung said it seeks to expand its presence in the European market by highlighting the connectivity between its AI-powered home appliances and the improved energy efficiencies of its product.
Samsung made its entry into the German market in 1986, challenging big-name rivals such as Bosch, Miele and Siemens.
To meet the high standards of German customers, the company has been focusing on introducing energy-efficient products, enhancing after-sales services, as well as extending the warranty period for key components such as motors and compressors, the company said.
As of last year, Samsung was the biggest brand in Germany’s freestanding refrigerator market with a 17.4% market share.
For the past 15 years, Samsung’s 32 fridges and 28 washers received the grades “very good” or “good” by Germany’s leading consumer organization Stiftung Warentest. – The Korea Times
