Major consumer electronics and appliance retailers who are currently facing a slowdown in sales, due to inflation issues, are not happy after Samsung chose to compete head on with them in an effort to grow their direct sell sales via their own online store.

Yesterday, Samsung Electronics Co. Ltd launched Samsung Week, a global campaign aimed at luring consumers who would normally shop at big CE and appliance retailers to buy direct a move that one Harvey Norman store owner said was “stupid”.

ChannelNews has spoken to four of the major partners of Samsung in Australia, and they all claim that brands such as Samsung, Dyson, Sony and several others are openly selling direct in direct competition with retailers.

Terry Smart the CEO of JB Hi Fi believes it’s a global direction of big brands such as Samsung, Dyson and Sony to sell direct, despite retailers such as Harvey Norman, JB Hi Fi and The Good Guys being able to deliver a wider range of locations where people can shop.

Among the deals on offer direct from the South Korean Company is a Samsung Galaxy Fold 4 smartphone with 1 Terabyte of memory, the original recommended retail price was $2,999, Samsung are offering consumers who buy direct a $300 discount for the additional memory.

Currently the 512GB model is selling for $2,699. A visit to Amazon reveals that consumers can buy 512GB of Samsung EVO Memory for $99.

The Harvey Norman executive said, “Our experience is that consumers who are buying a $2,600 + smartphones are going to want to see it, irrelevant of whether it has 1 terabyte of memory”. An instore experience is still critical and what Samsung are doing is competing direct in an effort to take margin away from retailers”.

Samsung describe the sale spanning TV’s appliances smartphones and monitors as being Samsung’s biggest global campaign ever that is exclusively run on the Samsung Online Store and at Samsung’s Experience Store in Sydney.

Smart claims that retailers such as JB Hi Fi and The Good Guys offering “A lot more” than what a brand is able to offer selling direct.

He claims that the size of their network and the fact that consumers trust JB Hi Fi and The Good Guys when buying consumer electronics and appliances is a key factor.
Then there is the size and locations of their network of retail stores across Australia.

“Consumer still want to see and touch a product and this is what a retail network delivers”.

From October 24, consumers can visit the Samsung Online Store to get a variety of deals on different days. Among the products being offered are smartphones and wearable devices, to TV and soundbars, smart monitors and connected home appliances.

Samsung claim that ‘Apart from special promotions and customized offers on the latest Samsung flagship products, shoppers can also supercharge their Galaxy experience with attractive bundle deals and trade in bonuses”.

The deals on offer include up to 20% off selected The Frame 4K TVs, up to 20% off a Galaxy Z Fold4 or Flip4 when bundled with 3 eligible products, and 40% off the HW-Q930B Q-Series and HW-B550 B-Series Soundbars.

On 27 October there will be a 24-hour flash sale where customers will receive a bonus pair of GalaxyBuds2Pro in Bora Purple with the purchase of any Galaxy Z Fold4, Z Flip4 or S22 series phones.

ChannelNews contacted Samsung to ascertain how long the Samsung Galaxy Fold 4 smartphone with 1 Terabyte of memory, had been advertised at the higher price of $2,999 on their web site as no other retailers in Australia are carrying a Fold 4 with 1Terrabyte of memory.

The Company has not responded yet despite two calls and one email.

See deals here.