Samsung India is setting its sights on significant growth in Tier 2 and Tier 3 cities as the festive season draws near. Aditya Babbar, the Vice President of MX Business at Samsung India, shared insights with Startup Superb indicating that these regions are not only expanding but are also embracing premium technology, including AI, more rapidly than ever.
Highlighting the fading gap between urban and rural markets, Babbar mentioned that the traditional distinctions are becoming less defined. He pointed out that discussions often separate India and Bharat, but he views them as a unified market. The growth in Tier 2 and Tier 3 cities is accelerating, with these areas adopting new technologies at an impressive rate. This rapid premiumisation is where the major technological advancements are emerging, thereby positioning India as a leader in AI adoption.
To take advantage of this encouraging trend in Tier 2 and lower regions, Samsung has devised a comprehensive strategy that centres on a consistent retail experience, tailored education, and innovative financial solutions.
A key element of this strategy is ensuring that the experience of purchasing a Samsung device is uniform nationwide. Babbar emphasised the significant investments made in the retail network, stating that there are now 20,000 retail stores prepared to provide an AI experience. This uniform experience is crucial, allowing customers in Tier 4, Tier 5, or Tier 2 locations, such as Moradabad, Muzaffarnagar, or Jalgaon, to enjoy the same level of service as those in major urban areas.
In addition to physical retail spaces, Samsung is working to overcome language barriers that can complicate the understanding of advanced features like Galaxy AI. Babbar noted the importance of trained in-store consultants who can effectively communicate in local dialects, thus making technology more accessible.
He stated that education should not be dictated by the language chosen by the company but should instead reflect the preferences of the consumer. This localised approach is fundamental, allowing consultants to better inform customers about the capabilities of Samsung devices.
The third, and possibly the most vital, component of their strategy involves making high-end devices more affordable for consumers who do not typically use traditional credit cards. By collaborating with non-banking financial companies (NBFCs) and developing innovative payment methods, Samsung is working to democratise access to its cutting-edge technology.
Babbar remarked that the shift in purchasing behaviour away from credit cards has been beneficial. He cited Samsung’s introduction of UPI cashbacks with the A17 — a notable move considering cashback offers were previously associated predominantly with credit cards. With India boasting one of the largest and fastest-growing UPI user bases, Babbar questioned why customers who prefer UPI payments should miss out on the same rewards as card users.
By merging a top-tier retail presence with localised knowledge and accessible payment options, Samsung is strategically positioned to tap into the growing aspirations of consumers throughout India’s heartland this festive season.