Threat of Substitutes
This element is indeed high as the markets for white goods are flooded with many substitutes and given the fact that consumer durables are often longer term purchases, companies like Samsung have to be careful in deciding on the appropriate marketing strategy. This is also the reason why many multinationals like Samsung often adopt differential pricing so as to attract consumers from across the income pyramid to wean them away from cheaper substitutes. Further, this element also means that many emerging market consumers are yet to deepen their dependence on white goods and instead, prefer to the traditional forms of housework wherein they rely less on gadgets and appliances. However, this is rapidly changing as more women enter the workforce in these markets making it necessary for them to use gadgets and appliances.