Samsung attracts 175 million customers in India with cashback card

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NEW DELHI (Reuters) – Samsung Electronics (005930.KS) is targeting repeat purchases from 175 million customers in India with a new cashback credit card, a senior executive said, in a move to boost sales in a critical market where it was once better. Smartphone seller.

With the start of the festive season in India, the South Korean electronics giant on Monday launched a new credit card with India’s Axis Bank (AXBK.NS) to offer 10% cashback throughout the year to customers who purchase Samsung products.

Usually, these discount offers are available on e-commerce sites like Inc (AMZN.O) and other traditional stores only during the holiday season or during sales.

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“We’re talking about 175 million existing consumers, which is our currently installed base for Samsung in India. This entire base is potential,” Raju Polan, senior vice president of Samsung’s mobile business in India, told Reuters.

Samsung, which says it is India’s largest consumer electronics company, sells everything from smartphones to washing machines in the country. But nearly 72% of India’s total revenue of $9.3 billion in 2020-21 came from smartphones.

Samsung’s move to offer cashback to customers through its new card partnership comes after it lost smartphone market share over time to Chinese competitors such as Xiaomi, Oppo and Vivo, who offer several budget smartphones in the world’s second largest mobile market.

Data from Counterpoint Research showed that in the second quarter of 2020, Samsung captured 26% of the smartphone market in India, which currently stands at 19%.

“Samsung is trending very strongly on the financial side of things. Financial support plays an important role in helping people make smartphone buying decisions,” said Tarun Pathak, analyst at Counter Point.

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(Monsef Fengatel reports from New Delhi). Editing by Aditya Kalra and Shinjini Ganguly

Our Standards: Thomson Reuters Trust Principles.

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