Samsung Plans to Subdivide Galaxy Brand, Creating a New Premium Brand to Challenge Apple

Samsung Plans to Subdivide Galaxy Brand, Creating a New Premium Brand to Challenge AppleAccording to Korean media outlet etoday, Samsung has initiated internal research to further subdivide the Galaxy brand, aiming to elevate its image in the premium market. This strategy draws inspiration from Hyundai Motor's launch of its luxury brand Genesis, with the goal of further strengthening competition against Apple

Samsung Plans to Subdivide Galaxy Brand, Creating a New Premium Brand to Challenge Apple

According to Korean media outlet etoday, Samsung has initiated internal research to further subdivide the Galaxy brand, aiming to elevate its image in the premium market. This strategy draws inspiration from Hyundai Motor's launch of its luxury brand Genesis, with the goal of further strengthening competition against Apple.

Since 2009, Samsung has used the "Galaxy" brand for all its phones, employing letters like Z, S, A, M, and F to represent different market positions. However, this strategy has proven to be a disadvantage in the premium market competition. Samsung Electronics' Global Chief Marketing Officer, Lee Young-hee, has pointed out that excessive product lines can dilute brand value, and consumers are seeking innovation and new names.

Samsung faces the dual challenges of declining sales and profit pressure, leading to the exploration of potential brand renaming or new brand launches. Hyundai Motor's Genesis brand, established in 2015, has achieved global sales exceeding 1 million units, becoming a crucial component for enhancing brand image and profitability. Industry experts believe Samsung should consider launching a new premium brand to boost its competitiveness in the high-end market.

In recent years, Samsung has faced strong challenges from Apple in the premium market. Apple has created a high-end brand image through its iPhone series, leveraging its ecosystem to firmly lock in users. While Samsung has achieved some success in technology and innovation, its brand image hasn't matched Apple's.

To reverse this situation, Samsung needs to take bolder action by creating a new premium brand to directly compete with Apple in the high-end market. Launching this new brand requires considering several factors:

• Brand Positioning: The new brand needs to clearly define its positioning, highlighting its differences from the Galaxy brand. For instance, the new brand could focus on premium design, unique features, personalized services, etc.

• Product Strategy: The new brand needs to launch products that attract premium users, such as foldable phones, high-end smartwatches, etc.

• Marketing Strategy: The new brand needs to implement effective marketing strategies to boost its brand awareness and influence. For example, collaborating with reputable brands for high-end product promotions.

The success of Samsung's brand subdivision strategy ultimately rests on its brand positioning, product strategy, and marketing strategy for the new brand. If Samsung can successfully launch a new premium brand, it will challenge Apple's dominance in the high-end market, enhancing Samsung's brand image and profitability.