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Samsung opts for premium products to retain market leadership

PT Samsung Electronics Indonesia (SEIN), the local arm of the South Korean electronics giant, is focusing on sales of its premium products to maintain the company's dominance in the country's home appliance market

Mariel Grazella (The Jakarta Post)
Jakarta
Fri, May 24, 2013 Published on May. 24, 2013 Published on 2013-05-24T12:27:29+07:00

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T Samsung Electronics Indonesia (SEIN), the local arm of the South Korean electronics giant, is focusing on sales of its premium products to maintain the company's dominance in the country's home appliance market.

Samsung's home appliances product marketing head, Reza Varindra, said in Jakarta on Thursday that the brand was now leading in the refrigerator and washing machine segment.

'We took the lead position last year and we intend to aggressively keep our spot by reinforcing our dominance in the premium segment of each market,' he said.

He added that this year, Samsung would continue pumping high-end products into the market. 'In the first half of the year, we have launched 12 refrigerator models, one of them being a multi-door fridge priced around Rp 40 million,' he said.

Samsung's main appliance products include refrigerators, washing machines and air conditioners.

Based on units sold, Samsung owned 28 percent of the two-door, 280 liters-plus refrigerator segment and 48 percent of the side-by-side-door refrigerator segment in 2012.

Reza added that the manufacturer also introduced 8 versions of front-and top-loading washing machines.

'The front-loading washing machines are priced between Rp 4 million and Rp 25 million'more than double than that of top-loading versions,' he said.

Statistics show that, based on units sold, the electronics manufacturer controlled 33 percent of the 'drum' washing machine market and 28.6 percent of the top-loading washing machine market in 2012.

Reza said that although entry-level products still dominated the overall home appliance market, its share had 'been wearing away' as middle-class consumers opted for premium products.

 'Consumers now manifest their status through the home appliances they purchase,' he said.

Data from market research company Gfk said that the market value of top-loading washing machines grew 24.5 percent in 2012, with front-loading washing machines climbing up 62.6 percent.

Meanwhile, the market value of two-door refrigerators rose 31.2 percent, with side-by-side-door refrigerators rising 105.8 percent.

An increasing number of consumers now preferred refrigerators with side-by-side doors because these products looked more 'presentable' in 'clean kitchens', or kitchen areas visible to guests, more so than single-door versions, Reza added.

'That is why we take into consideration the design and color when making refrigerators,' he said, adding that the manufacturer noticed similar trends in the washing machine segment.

Consumers wanted washing machines that were considered classy given that laundry rooms, especially those in apartments, have become sections visible to house guests, continued Reza.

'People want washing machines with the latest and coolest design because washing machines are no longer just washing machines,' he said, referring to the function and fashion purpose of these appliances.

The trend has not only impacted washing machine sales, but also air conditioners.

'The property industry in Indonesia has been very robust, which translates to better air conditioner sales as this is the sole appliance that people purchase beyond one unit,' he said.

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