With more than a billion wireless connections and just about 450 million smartphones, India is a key growth market for companies such as Samsung, which sells its devices through 180,000 retail outlets and more than 2,000 exclusive stores. Other smartphone players offer similar schemes through tie-ups with finance firms, but for Samsung having its own loan product will likely help to drive sales. Amazon.com’s (AMZN.O) India business and home-grown rival Flipkart offer instalment plans on debit and credit cards, but in India millions still do not have access to plastic money.
Samsung will initially offer an interest free loan to customers across its smartphone range, Singh said, adding that financing terms such as interest could vary in future. Samsung, once the leader in India’s smartphone market, has faced fierce competition from rivals such as China’s Xiaomi, Oppo and Vivo which have launched low-cost devices with competitive specs and used the glitz of Bollywood and cricket to sell them. Seoul-headquartered Samsung has responded with launch of budget devices and become savvier with online marketing to millennials to claw back lost market share.
Samsung Electronics (005930.KS) is to give fund to potential cell phone purchasers, an organization official said on Thursday, in an offer to help cell phone deals in India where it faces wild challenge from adversaries, for example, China’s Xiaomi (1810.HK). The financing item, for which Samsung has tied up with a neighborhood shadow banking firm, will enable the South Korean tech to gathering offer fast and simple credits to all forthcoming cell phone clients, Mohandeep Singh, Samsung India’s senior VP for versatile business told Reuters in a phone meet. “We are offering fund to customers who have not been served shopper money previously,” Singh said. He said the organization would dispatch the item in 5,000 stores in 30 urban communities, and before the years over it needs to be in 10,000 stores in 100 urban areas. In contrast to Western markets, where cell phones are frequently attached to telecom organization gets, the majority of telephones in India are sold by retailers, with clients picking remote bearers and portable plans without anyone else.