By Kim Yoo-chul
BERLIN ― Samsung Electronics says it will invest more money and effort to strengthen its position in household appliances ― refrigerators, washing machines and air conditioners ― in Europe.
``We have been quicker than our Asian rivals LG Electronics and Panasonic in releasing products and have been seeing faster growth than them as well,’’ Hong Chan-wan, head of Samsung’s home appliances division, told Korean journalists in Berlin on the sidelines of the IFA consumer electronics fair.
``Our home appliances business is expected to grow at least 5 percent this year, as the market for white goods is less affected by volatility in the global economy.’’
Samsung is the top maker of televisions and the No.2 handset vendor behind Nokia, a rival that it expects to surpass by the end of the year.
However, the company has been flexing only a smaller muscle in white goods and has been struggling to compete with established global brands Whirlpool and Electrolux.
Hong, a key lieutenant of Samsung CEO Choi Gee-sung, said that improving the company’s reputation in white goods will depend on its success in high-end products.
For Samsung, the idea for premium is about plugging these devices into the Internet. At the IFA, Samsung outlined six core elements for its future home appliances in ``smart touch,’’ ``smart control,’’ ``smart grid,’’ ``smart care,’’ ``smart shopping’’ and ``smart apps.’’
For example, smart touch adds a wide range of new functions to refrigerators, such as information updates from the Internet and monitoring the freshness of food, which users can control via a touch screen installed on its doors.
Samsung plans to release three new products to the European market, including a range extension of the ``Eco Bubble’’ washing machine and the new ``G-Series’’ refrigerator.
``We will lead product innovation with on-time product release and by leveling-up our after-sales service policies,’’ said Hong.
``Smart appliances are already a new trend, as Internet capability goes beyond just smartphones and TV. Our smart devices in washers and refrigerators have been garnering favorable responses from retailers and distributors in Europe,’’ he said.
Hong said the company doesn’t plan to get involved in the market for smaller appliances such as coffee machines.
``The market for small-sized home appliances is not big enough to create a meaningful level of revenue for a company as big as Samsung. We will show more focus on refrigerators and washers,’’ Hong said, adding that the company plans to invest more on its manufacturing plant in Poland.
While the company is vowing big things in Europe, Samsung has been fighting bad press at home, where it was forced to publically apologize to Korean consumers and recall some premium air conditioner models due to their software flaws.
The company is also engaged in a trade-related dispute with Whirlpool, although Hong declined to comment on the issue.
The U.S. Commerce Department recently dealt a blow to Whirlpool’s attempt to tag higher duties on lower-priced refrigerators made by Samsung and other Korean companies.
In a preliminary ruling, the department said Samsung, along with LG and Daewoo Electronics, had not received big enough government subsidies to warrant U.S. countervailing duties.