Date:06/01/2006 URL: http://www.thehindubusinessline.com/2006/01/06/stories/2006010600910800.htm

Back Samsung to focus on flat TV, premium products

K. Giriprakash

Bangalore , Jan. 5

CONSUMER electronics giant Samsung expects sales in India to follow global trends and has decided to focus more on flat and high-end television categories and high-end white goods.

The Samsung India Deputy Managing Director, Mr R. Zutshi, told Business Line that the company wants to establish its market leadership in the flat and high-end television categories in 2006 because of consumers' preference for larger TV sets.

In the home appliances category, Samsung wants to focus on the high-end top-loading and front-loading fully automatic washing machine segment and on convection microwave ovens.

Mr Zutshi said flat panels' contribution is projected to grow from less than 1 per cent in 2005 to around 4 per cent in 2006 and double thereafter. Globally, Samsung expects LCD sales to grow in contribution to around 19 per cent of worldwide sales by 2007 from around 5 per cent in 2004.

The global CTV industry is estimated to grow to around 186 million units from 166 million units over the next two years. In India, while flat televisions have grown by 74 per cent, the high-end categories such as LCD, plasma, PJTV and Slim Fit have grown by 200 per cent in 2005, Mr Zutshi said.

Flat TV and high-end TV sales' contribution to total TV sales for this year stand at over 80 per cent compared with 50 per cent level last year. The contribution of frost-free models to the refrigerator category has increased by one per cent to 39 per cent. The fully automatic segment in the washing machine category has grown to 25 per cent from 18 per cent.

Samsung's market share in flat televisions has increased to 22.7 per cent between January and November 2005 from 21.2 per cent during the corresponding period in the previous year, while in the refrigerator segment, it has increased to 16.2 per cent from 10.6 per cent during the corresponding period.

In washing machines, it has increased to19. 7 per cent from 14.2 per cent, and in microwave ovens to 25.2 per cent from 15.5 per cent in the January-November period. Samsung has around 80 brand shops across the country to market its products.