hello. This is Technologytodaynow. There is news that Samsung Electronics is considering creating a new high-end Galaxy brand, so I would like to take a closer look.
Samsung to reimagine Galaxy S premium brand?
Galaxy brand shunned by younger generations
The Samsung Galaxy S series has long been Samsung’s premium smartphone lineup, but in Korea, younger generations are increasingly shunning the Galaxy in favor of the iPhone. In particular, teens and 20-somethings overwhelmingly prefer the iPhone, and this trend is continuing, with more iPhone users in their 30s and 40s. Galaxy, on the other hand, is likely to see a decline in users if this trend continues.
Brand image issues caused by low-cost Galaxy
We believe that the experience of the lower-end Galaxy smartphones is a big part of the reason why younger consumers are not favoring Galaxy. For example, if a parent buys a low-end Galaxy Kids phone for their child, the slow speed and poor performance can lead to a frustrating experience and a negative perception of the entire Galaxy brand from a young age.
Perhaps realizing that this negative image could cause demand to decline in the long run, news broke that Samsung is considering creating a new brand.
Samsung Electronics is considering launching a new brand
According to a report by eToday, Samsung Electronics is considering creating a new luxury brand, a strategy similar to how Hyundai Motor built a premium image after launching the Genesis brand.
Samsung currently distinguishes its Galaxy lineup by adding letters such as S, Z, and A to differentiate them, but critics have argued that the fact that all products, from the low-end at 100,000 won to the high-end at nearly 3 million won, are unified under the Galaxy name limits Samsung’s ability to build a premium brand image like the iPhone.
Pros and cons of luxury brand separation
If Samsung were to add a new high-end brand, it would seem that separating the premium line centered around the Galaxy S and Z series from the rest of the Galaxy brand would be a great way to boost the overall image of the Galaxy brand. However, brand separation isn’t always a positive outcome, as a name change can be confusing to consumers and risk further eroding the premium image it already has.
In the case of HP, they also integrated the existing premium line Specter brand and changed the name to Omni Book Ultra Philip, but I don’t think the Omni Book Ultra Philip brand is better than Specter at all. Therefore, it seems necessary to carefully consider brand separation of high-end lines such as Samsung Galaxy S.
Product quality is more important than brand
One of the other reasons why the Galaxy brand has become so bad is because of quality issues, such as the recent Galaxy S series’ Exynos performance issues, GOS issues, and Buzz 3’s QC issues, rather than brand image issues. Therefore, I think it would be better to focus on the quality of the product itself rather than creating a new Galaxy high-end brand.
Launching a new brand should be approached carefully
If Samsung launches a new brand, expectations are high on how it will react from consumers, but it will have to be approached carefully. Since the Galaxy brand has already been released for 14 years, and the perception that Samsung is the Galaxy soon is deep, it will not be easy to change the brand name.
This is because sudden rebranding can increase marketing costs and, contrary to the goal of improving brand image, risks confusion among consumers. Attention is focusing on what brand strategy Samsung will finally adopt and how the Galaxy S image will change.