Samsung-LG ‘air conditioner share’ truth battle…only distributors know the real number one?
Subscribe to the Hankyoreh newsletter H:730. Type ‘Hankyoreh 730’ in the search bar.
Ahead of summer, when demand for air conditioners slows down, Samsung Electronics and LG Electronics are engaged in a fierce battle for the top spot in the domestic air conditioner market. When Samsung Electronics announced that it had taken the top spot in the domestic air conditioner market share in the first quarter, LG Electronics immediately refuted it, saying that the figures were not reliable.
According to a report by Hankyoreh on the 21st, the battle for the top spot in the air conditioner market began last week when Samsung Electronics released a press release stating that it had recorded a 48.6% share of the market. Samsung Electronics stated that “Samsung Air Conditioner has recorded a share of more than 40% for 10 years since 2013” based on non-public research data from GFK, a global market research organization, and articles titled “Samsung Air Conditioner has been the No. 1 in the domestic market for 10 years. According to GK data, LG Electronics’ air conditioner market share was 32.5% in the first quarter of this year. Samsung’s announcement of the number one market share is seen as a marketing strategy to increase demand for its products during the summer season.
Elgie Electronics immediately responded with a rebuttal, saying, “Samsung’s announcement is different from the actual share.” The company said, “The GK data cited by Samsung does not reflect the sales volume of best shops, so it is different from the actual share.” An official from LG Electronics said, “Air conditioners account for 40% of sales on Best Shop because of the discount for bundling home appliances. Due to our sales policy, we do not provide Best Shop statistics to GK.”
Samsung Electronics retorted, “Considering the reliability of GK’s survey, it reflects the sales estimates of Best Shop to some extent, so there is not much difference from the actual share.”
In response to the back-and-forth between the two companies메이저놀이터, GFK Korea contacted the media outlets that published the article “Samsung Air Conditioner Market Share No. 1” and asked them to remove the phrase “No. 1” from the article. “The part that mentioned that Samsung Electronics’ market share is No. 1 is in violation of GFK’s data use policy. (Samsung Electronics) using data to say that it is No. 1 in the market is a violation of contractual obligations (confidentiality, etc.) with GFK,” the email said.
This isn’t the first time Samsung and LG have clashed over air conditioner market share. In 2013, Samsung Electronics released a television commercial claiming to be the “No. 1 in domestic home air conditioner market share” based on data from GFK, which was challenged by LG Electronics to the Korea Broadcasting Association.
It is estimated that the number of air conditioners sold annually is around 2 million, with Samsung Electronics and LG Electronics selling around 800,000 units each, and other companies selling 400,000 units.
Distributors who supply and sell air conditioners from Samsung Electronics and LG Electronics explained that “Samsung Electronics is ahead in terms of sales volume and LG Electronics is ahead in terms of sales revenue.” They said that while Elgie’s higher prices and lower discounts sometimes put it behind Samsung in terms of units sold, the two companies are on par in terms of revenue. A distributor who requested anonymity said, “Based on the same grade of air conditioner, Samsung’s products are 10 to 20 percent cheaper than Elgie’s, and depending on the season, Samsung’s discount rate is often higher.”