Samsung ends remarkable year in SL; looks for more growth

Having taking the reins of the Samsung Sri Lanka branch last year on 24 February, its dynamic and charismatic Managing Director Youngmin Shin constantly challenges himself to hit targets.

Under Shin’s watch Samsung Sri Lanka recorded its highest-ever growth rate in 2015 and has being persistent on retaining its top position in the smartphone and TV category.

In November last year Samsung SL signed an MOU with the Ministry of Skills Development and Vocational Training to set up a technical lab at the Vocational Training Authority to elevate student learning conditions.

In the backdrop of Samsung rolling out its much-awaited premium flagship, the Galaxy S7 and S7 edge last week, Shin has high hopes for 2016. Commenting on the technological scope he sees today in Sri Lanka during a Daily FT interview Shin said: “Sri Lanka has always proved to be ahead of the region when it comes to mobile technology. Sri Lanka was one of the first markets to introduce 3G and 4G and we see many operators investing in 4G expansions and Wi-Fi zones. Samsung has the best IOT products and solutions available in the country and we are well poised to tap into the rapidly-growing potential of the Sri Lankan market.”

Following are excerpts:

By Shehana Dain

​Q: How would you rate Samsung’s performance in 2015? Did Samsung Sri Lanka meet its targets?

A: In 2015, Samsung Sri Lanka was able to continue its momentum of growth and Sri Lanka emerged as one of the fastest growing markets for Samsung products in South West Asia. We are very happy to have worked together as a team to exceed our financial targets in 2015 and Sri Lanka maintained its position as one of the top performing markets in the region. Sri Lanka is located in close proximity to the Samsung headquarters and this has led to us receiving a significant amount of support and investment for our local operations.

Q: Looking back, how strong was Samsung’s financial performance last year?

A: In Sri Lanka we had a remarkable year, we are lucky to have achieved double-digit growth since the company’s inception and 2015 was actually our highest year of growth to date. Our key business areas of growth were recorded in the mobile, smartphone, TV and refrigerator categories. We also managed to sell a record number of phones in 2015, which was a significant achievement and we are very proud. Growth in our mobile category topped 270% while total growth was about 90%.

Managing Director Youngmin Shin – Pic by Lasantha Kumara

Q: What are the challenges you face in the mobile telecom industry?

A: Globally, the mobile market is reaching a state of maturity – for instance, over half of the total population of Western Europe owns a smartphone. We are also seeing mobile penetration grow throughout Sri Lanka. At Samsung, we think that the centricity of the smartphone to everyday life presents tremendous opportunity for continued growth. To address the changing market dynamics, Samsung is focused on building an ecosystem of new experiences that are connected to and are powered by the smartphone such as the Gear S2, Gear VR, and Samsung Pay which will bring together hardware, software and services.

Q: Increasing taxes on mobile telephones, how do you see it as a challenge for sales?

A: We do not comment on Government policies such as taxation. However, we hope that we can continue to create awareness amongst consumers about the benefits of an original branded product that comes with a promise of quality, safety and all the necessary warranties.

" In Sri Lanka we had a remarkable year, we are lucky to have achieved double-digit growth since the company’s inception and 2015 was actually our highest year of growth to date. Our key business areas of growth were recorded in the mobile, smartphone, TV and refrigerator categories. We also managed to sell a record number of phones in 2015, which was a significant achievement and we are very proud. Growth in our mobile category topped 270% while total growth was about 90%. Additionally we are hoping to build partnerships with reliable local counterparts to set up production bases over here and finally assemble a ‘Made in Sri Lanka’ product. We won’t directly invest in these factories; we will supply items and local partners will go ahead with the process, most probably the products will include home appliances "

Q: According to your statistics, what was the product that Sri Lankans loved the most?

A: Our flagship series have played a key role in appealing to local consumers which include the S Series as well as the Note and A Series. Samsung has always focused on launching mid-range devices in Sri Lanka that are compatible with the needs of local consumers but also exceed their expectations in terms of innovation and technology. We try our best to give all of our consumers the chance to enjoy Samsung’s high end and sophisticated technology at a fair and high value price point. We’ve also seen an increase in demand for more high-end devices that consumers aspire to own. Samsung dominates the premium segment in Sri Lanka and we have very few competitors.

Many consumers are aware that Samsung has the best set of 4G devices available in the market-place and popular devices like the J Series and Prime Series are winning over many local consumers. Our mid range mobile sales were really good explosive in a way. 

We have also seen a rise in demand for our consumer electronics, including a high affinity toward our range of televisions. We are very fortunate to have a presence in lives and homes of many Sri Lankans.

Q: Does Samsung have any investments in the pipeline in 2016?

A: We will focus primarily on enhancing our retail visibility and we want to standardise and uplift our in-store experience for consumers across the island. We will also concentrate on conducting a series of staff training initiatives to ensure that consumers receive the very best standards of service at every touch point. We are also hoping to increase our service centre points because that’s what is important if we want to retain our customers.

Additionally we are hoping to build partnerships with reliable local counterparts to set up production bases over here and finally assemble a ‘Made in Sri Lanka’ product. We won’t directly invest in these factories we will supply items and local partners will go ahead with the process, most probably the products will include home appliances.

Q: Are there any other big launches planned for this following the Galaxy S7 launch? If so, when?

A: We are constantly innovating and evolving to the needs of our consumers and we no doubt have some very exciting launches planned this year. Last year we had about four mobile launches and in September or October we will announce a new product from the note series.

Q: What’s on the cards for Samsung Sri Lanka this year?

A: We want to retain our number one position and the love we received from the Sri Lankan people. For us, consumers always come first. They are our main priority and everything we do is centred on our consumers, their needs and their preferences. Every decision we make from the planning and execution of campaigns to our launches, are all carefully crafted based on an in-depth understanding our Sri Lankan consumers, their lifestyles and culture. We want to ultimately produce a make for Sri Lanka product which continuously

We are currently studying Sri Lankan people’s requirements and attitude and we will try to build our applications around that theme. Even with our in-store communications, we carefully integrate experiences; interactions and messages to create a retail experience that delights and excites. This year, Samsung Sri Lanka will remain aggressive in rolling out a variety of different marketing campaigns and we will also strengthen our focus on delivering exceptional levels of service.

 Q: What’s your strategy as the Country Director to be ahead of your competitors in Sri Lanka?

A: One of the key elements of our offering that gives us a competitive edge is the excellent after-sales support services that we provide our consumers with. This is backed by Samsung’s manufacturing warranties and so consumers feel that they can trust our brand and our promise of guaranteed quality. Our introduction of innovative products such as the USHD, Convertible Freezer, Add Wash and Hot Blast has also helped us to gain a competitive advantage in the market-place.

Q: What sort of potential do you see in Sri Lanka for technology? Where do we stand at the moment?

A: Sri Lanka has always proved to be ahead of the region when it comes to mobile technology. Sri Lanka was one of the first markets to introduce 3G and 4G and we see many operators investing in 4G expansions and Wi-Fi zones. Samsung has the best IOT products and solutions available in the country and we are well poised to tap into the rapidly growing potential of the Sri Lankan market. The market for the 32-40 inch TV segment is growing today and people like bigger screens and better picture quality.

Q: How has the progress been with the completion of the Samsung technical lab? What was the investment that went into the project?

A: We are up and running and we have even given some of our devices there for re-assembly purposes. The Samsung Technical Lab will provide students with an opportunity to learn about different Samsung products from mobile phones to consumer electronics. The education and training they receive will give them a distinct advantage and will help them to find post-graduation employment with greater ease. We have already signed a Memorandum of Understanding with the Vocational Training Authority of Sri Lanka and currently the Train-the-Trainer (teacher training course) by Samsung is in progress and is expected to end by mid-April. We are hoping to help other deserving schools through our CSR programs.

Q: Is Samsung cooperating with the Government for any new projects?

A: The Samsung Technical Training Lab has received a lot of Government support through the Vocational Training Authority and we remain open and willing to working with the Government on projects and initiatives that will contribute to the country’s growth and development. We don’t have anything planned at the moment, however we are open for initiatives.