Business Daily from THE HINDU group of publications
Thursday, Jul 16, 2009
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Business Daily from THE HINDU group of publications Thursday, Jul 16, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Marketing
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Brands Samsung sees rapid shift to top-end models
Mr R. Zutshi, Deputy Managing Director, Samsung India, and Bollywood actor Neha Dhupia at the launch of Samsung’s new range of fully automatic washing machines, in Chennai on Wednesday. Our Bureau Chennai, July 15 Samsung India, which launched a new range of front and top loading fully automatic washing machines here today, is seeing a shift in urban markets to higher end models, be it in TVs, ACs or washers. The company’s Deputy Managing Director, Mr R. Zutshi, says that 62 per cent of sales of its ACs came from split air-conditioners, which cost at least 20 per cent more than the window ACs. The shift is even more pronounced in the South where 80 per cent of sales came from splits. While Samsung sales of LCD TVs saw a 117 per cent growth, Mr Zutshi says that the washing machines business is growing by 31 per cent, outstripping industry growth of 20 per cent. “The share of fully automatic machines in sales of our washers will be 45 per cent this year,” says Mr Zutshi. The company, which will invest $20 million this year in increasing capacities for its home appliances business, R&D and marketing, will have two growth drivers this year: frost-free fridges and LCD TVs which saw 24 per cent and 28 per cent growth, respectively, last year. The company itself grew 30 per cent last year and Mr Zutshi expects 25 per cent growth this calendar year. It targets $2 billion (Rs 9,600 crore approximately) in sales this year (2008 sales: $1.7 billion) and expects to overhaul its close competitor LG Electronics. Samsung India is targeting exports of Rs 1,200 crore this year of all categories of durables to SAARC countries, up from the Rs 550-crore it exported last calendar year. The company claims market leadership in several categories: a 25 per cent market share in the fully automatic top loading washing machine segment, and an over 30 per cent share in LCD TVs. It expects to sell eight lakh washing machines this year; 3.6 lakh of this will be fully automatic, explains Mr Zutshi. A delayed monsoon is a worry, he says, as an impact on farm incomes can affect durable sales. Forty per cent of Samsung’s sales come from the rural markets and rural contribution is increasing by two per cent, on an average, every year. Samsung targeting $2-b revenue More Stories on : Brands | Consumer Electronics | Budget
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