With more than half of the total smartphone market share and a third of premium phone sales, the Romanian subsidiary of Samsung Electronics is steadily strengthening the company’s position as a leader in the technology market. Romania’s potential to become a leading tech hub in Eastern Europe could be a driving force for
Samsung’s strategy, also with the help of Romanian consumers, always eager to try its innovative products and services. Julia Kim, President of Samsung Electronics Romania and Bulgaria, spoke to Business Review about the success of Samsung Electronics Romania and provided an overview of the company’s approach to sustainability, one of its top priorities both both locally and globally.
By Anda Sebesi
What can you tell us about Samsung’s current global operations?
Despite macroeconomic uncertainties, which are expected to persist, we have managed to achieve record revenues every quarter so far this year. In the third quarter, revenue rose 3.8% to 76.78 trillion won ($54 billion). Specifically, the smartphone business showed strong profitability as demand increased following the release of foldable phones and new wearables. Even though the economic contraction has hit consumer electronics demand, we expect our annual revenue to exceed the all-time high in 2021.
What is the story behind Samsung’s success in Romania?
Samsung Electronics Romania became a fully autonomous sales subsidiary in June 2010, at a time of general IT market growth in South East Europe. Its success here is the result of a great mix: a growing market, a strong team bringing Samsung’s vision, mission and values to life, and tech-savvy consumers looking for a brand. that puts their needs first and delivers quality and inspiration. . And it is precisely the fact that Romanian consumers appreciate innovation and quality that has allowed us to maintain our leading position in the categories of mobile and visual displays.
What are the pillars of the company’s strategy?
They include personalization, connectivity, durability, and a people-centric approach, which means understanding that every person is unique and they all want to personalize their devices to suit their lifestyle. In response to this, we have gradually introduced new products like the Bespoke Jet™ vacuum cleaner and the Bespoke washer and dryer, extending our range to every room in the home to give consumers more ways to personalize their spaces. We’ve also expanded our Lifestyle series of TVs, which feature the latest technology and increased customization options, allowing users to express their personal styles and access personalized video and audio experiences.
A better future requires seamless connectivity. As a founding member of the Home Connectivity Alliance (HCA), which brings together various manufacturers of smart home appliances, we aim to foster greater interoperability between appliances from all brands to provide more choice to consumers and improve the security and safety of products and services. Through our SmartThings app, users can control over 40 functions in 15 product categories from 13 brands, including Samsung Electronics. I mentioned sustainability as a main pillar; on the one hand, this means integrating sustainability into the way customers experience our products, and on the other hand, it means expanding the use of recycled materials to all mobile products and home appliances over the next three years.
One of the main statements of Samsung Electronics is “We are creating a culture of endless possibilities”. How does the concept translate into innovation for its customers around the world?
Behind every product launch, whether it’s a new phone, a new type of TV, or a range extension like Bespoke home appliances, there are entire research teams working hard to that the innovations we bring to market can truly add value to the lives of our consumers. Throughout the process, we also rely on the feedback we receive from consumers to carefully study their desires and expectations, but also to find new ways to give them new experiences and open up endless possibilities.
I think it’s also important to mention that our culture of endless possibilities has a new layer, as we now focus more and more on a future built on everyday sustainability. This means that we use innovation to meet the needs of our consumers, in Romania and around the world, but also to empower people to reduce their carbon footprint and make positive changes towards a better future. And let me give readers an example of how we embed sustainability into our culture: to eliminate battery waste, we launched the SolarCell remote control with an integrated solar panel that can be charged day or night. The latest version of the SolarCell Remote obtains electricity from radio frequencies in devices such as Wi-Fi routers and it will be included alongside other Samsung products, including televisions and home appliances, with the aim eliminate more than 200 million batteries from landfills.
How has your portfolio developed over the years and what is your view of the Romanian consumer?
Based on our data, Romanian consumers make their purchasing decisions based on three key criteria: price, quality and durability. They spend their income on food, savings and investments, but also, depending on budgetary constraints, on experiences (relaxation, entertainment, etc.). They’re also willing to pay extra for quality because they really value innovation, which translates to very good results for us in the premium realm. If we talk about young Romanian consumers, we know that they are looking for means of expression. They love individualized shopping experiences and pay close attention to brand ethics and corporate responsibility.
Customers are at the heart of our strategy, which is why we constantly adapt and expand our portfolio according to their needs and expectations. Our services and products now cover much of what people’s needs mean today, from high-performance phones for multitasking, to customizable electrical appliances, to state-of-the-art heat pumps to provide more comfort for people.
What are the similarities and differences between the Romanian market and the other markets in which you operate in the CEE region?
Romania, like Bulgaria where we also operate, is a growing technology hub in Eastern Europe, and both countries have managed to create an attractive business environment. Both Romania and Bulgaria have strong growth potential, including in the smart home market. Two years ago, I had the opportunity to coordinate the development of Samsung’s business in Hungary, a country on the way to becoming a leading digital technology hub, with consumers who, like Romanians, are eager to try our innovative products and services. .
How has this year been for Samsung in Romania in terms of achievements, financial results and investments?
Although global economic activity is slowing down, we have managed to continue to grow and expand in several segments. In the smartphone segment, Samsung’s market share continues to be over 50% in terms of units sold. In the premium segment, a third of the phones sold in the market are Samsung devices. This demonstrates Romanian consumers’ affinity for high-end Samsung products, which have cutting-edge specifications.
In terms of TVs, the company has a market share of 42% of the total market by value. We continue to see positive developments in this segment due to growing consumer interest in smart TVs and connectivity as the technology behind these devices now provides users with unique viewing experiences.
How important is Romania to Samsung and how big is the country in the company’s portfolio?
As already mentioned, Romanians are very open to new technologies, which is also reflected in the increases recorded in several business segments, including smartphones and consumer electronics. Moreover, our data and recent studies show that Romanians are increasingly interested in investing in a Smart Home, looking for smart solutions for their home that will not only bring them more comfort, but also help them save money. Energy. Considering all these aspects, we can see that the Romanian market has great potential for development, and therefore, it holds major strategic value for us.
What are your longer term plans in Romania?
We are of course focused on strengthening Samsung’s position as a leader in the technology market. We will continue to provide Romanian consumers with products and solutions designed to bring them new experiences and new alternatives for a better quality of life. We also want to bring AI-based technologies closer to people; as an example, I would cite the next Bespoke washing machines with AI Ecobubble (a function that achieves the same level of cleanliness with less energy consumption). We are also committed to launching 100% Wi-Fi devices by the end of 2023 to ensure access to SmartThings Energy, an easy-to-use, app-controlled smart meter service that helps users reduce their consumption. of energy. And of course, our plans also include guaranteeing the best performance you can get in the smartphone world thanks to the launch of new flagship phones and accessories.
