Samsung Electronics And Best Buy Will Open 200 ‘Samsung Open Houses’ By End Of This Year

Samsung is launching ‘Samsung Open House (SO221H)’, which is a store exclusive for home appliances, at Best Buy that is North America’s biggest electronics corporation.

This is the second launching of Samsung Open House after it did so first in China in April, and it seems that ‘Shop in shop’ competition is being regularized.
Samsung Electronics’ Home Appliances Business Department had discussed with Best Buy in last July about preparing SO221H and is establishing SOH at major stores in the U.S. starting from Minnesota and Illinois.

Just like what Samsung Electronics did in China, it has introduced ‘Center Stage’ that is made up of 85-inch touch digital signage45 where people can look at Samsung Electronics’ home appliances such as refrigerators, washing machines and others in actual sizes and download related information on their Smartphones.
Both companies are planning to increase a number of SOH up to 200 by end of this year because Samsung Electronics’ plan to capture a leadership in North America, which is the biggest home appliances market, correlates with Best Buy making half of its sales from home appliances.
Best Buy had made 38% of its 2nd quarter sales ($8.528 billion) from home appliances. Just looking at the U.S. alone where it had made sales of $7.878 billion, 42% of sales had come from home appliances and percentage surpasses 50% if TVs that are part of entertainment line are included.

Samsung Open House that is set up at Best Buy store in Minnesota

Fact that Samsung Electronics is establishing SOH in Best Buy indicates that Samsung Electronics is strengthening its plan to capture number 1 in North American home appliances market just like it did for Smartphone and TV because being number 1 in North America will be a cornerstone of being number 1 in the world.
In 2013 Samsung Electronics had prepared ‘Samsung Experience Shop’, which was made up of wireless business department’s products such as Smartphone, Tablet PC and others and was able to reach the top of Smartphone market with Galaxy Smartphone series. Its ‘Samsung Entertainment Experience’, which was made up of video display (VD) business department’s product lines such as TV, audio and others, had played a key role in putting its 4K (3840 x 2160) at the top.

A customer is looking for products at Samsung Open House that is located in Best Buy store in Minnesota

‘Shop in shop’ within merchandisers are being recognized as an important business strategy to global electronics industries because it can use excellent economic standing of merchandisers while reducing burdens of expensive real estate prices. Microsoft had prepared ‘Window Store’ at Best Buy in 2013, and SONY had prepared ‘SONY Experience at Best Buy’ last year. Digital camera industries made up of SONY, Canon, and Nikon once had established ‘Best Buy Camera Experience Shop’ together.
It is possible to receive knowhow from merchandisers’ specialists. A Best Buy specialist will also be placed at SO221H and he or she will explain about Samsung Electronics’ products while comparing them to products from different companies. Because merchandisers can share profits with home appliances businesses, they can use this method to create a new way of making profit.

“SOH will show premium home appliances to consumers and introduce them at center stage. Consumers can easily find products that are suitable to each person’s likings and purchase them.” said Vice-President Kevin Balon of Best Buy’s Home Appliances Department about SOH.
Staff Reporter Seo, Hyeongseok | [email protected]