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According to recent news from the Korean electronics industry, Samsung Electronics recently transferred the home LED bulb sales business under the LED division of the accessories department to the CE division of the home appliance division. Since the CE business unit has no distribution network in the Japanese market, it means that Samsung Electronics has completely withdrawn from the Japanese household LED market.
Although the commercial LED business is still under the responsibility of the LED business unit, the LED standard promoted by the Japanese government does not match the technology of Samsung Electronics, so Samsung decided to stop adding new business.
Samsung Electronics plans to repair and manage only the commercial LED business and gradually narrow down its business. A related person from Samsung Electronics pointed out that the price competition with Japanese companies in the case of continued depreciation of the yen will lead to a deterioration in profitability, and Samsung will focus on other large-scale markets outside Japan.
Since 2009, Samsung has selected LED as the next profit source business, and actively deployed the Japanese market, but ultimately failed to break the barriers in the local market.
In addition to the strength of Japanese companies, the continued depreciation of the yen has become another barrier to prevent Korean companies from entering.
Since entering this year, the yen has depreciated by nearly 25, while the won has continued to appreciate. The price competitiveness of Korean companies in the global market and Japanese companies has fallen sharply, and the profitability in the Japanese market has been a red light.