Samsung Share In Home Appliances Mart Rises

"The performance has been beyond our expectations," Samsung vice-president (sales) Ravinder Zutshi said.

According to ORG Marg figures, Samsung's marketshare in frost-free refrigerators of 310 litres and above improved from 27 per cent during 1999 to 46.2 per cent during Januray-June 2000. In the fully-automatic washing machines' market, the company's share has doubled from four per cent to eight per cent during the same period.

The company's marketshare in air-conditioners during the period improved from seven per cent to 12 per cent, while that in microwave ovens rose from 12 per cent to 22 per cent, according to the company estimates.

 

Overall, home appliances are expected to contribute 40 per cent to Samsung's turnover for 2000. Home appliances were responsible for 30 per cent of the company's turnover last year.

According to Zutshi, Samsung is expected to close the year 2000 with a turnover of Rs 1,500 crore and a net profit of over Rs 50 crore.

The jump in marketshare comes in the wake of three initiatives launched by the company in early-2000. One, the bio concept was built round these products. The company introduced the bio-fresh concept in its refrigerators. The vegetable box of the refrigerators were given a bio-ceramic coating to block infra-red rays which, in turn, prevents vitamin D degeneration. The bio ceramic microwave ovens had a ceramic enamel cavity to preserve nourishment.

Bio helath plus air-conditioners came with a bio coating of all parts.

Two products were added to expand the range. In air-conditioners, for instance, Samsung came up with a 0.75 tonne model and new mechanical versions of the 1 tonne and 1.5 tonne models.

The biggest success, however, has come in washing machines. In May the company launched Karisma, a single tub washing machine with manual controls. It was priced between a semi-automatic and a fully-automatic washing machine. Zutshi says that Karisma is selling almost 5,000 units per month.

Last, but not the least, Samsung's decision to appoint film star Tabu as a brand ambassador for its products also seems to have paid off. The actress was signed on by Samsung to promote its home appliances in February 2000.