Samsung remains top consumer tech provider on romanian market

SAMSUNG REMAINS TOP Investing in innovative technologies for buildings and boosting the sustainability of projects are priorities for CONSUMER TECH PROVIDER Dimitris Raptis, the CEO of Globalworth Group.

He spoke to Business Review about the company’s office and logistics portfolio in Romania, which has grown to EUR 1.5 billion in value, and provided insight into the emerging ON ROMANIAN MARKET opportunities offered by the local market.

By Anda Sebesi

With over half of the total smartphone market share and one third of premium phone sales, the Romanian subsidiary of Samsung Electronics is constantly reinforcing the company’s position as a leader on the technology market. Romania’s potential of becoming a top tech hub in Eastern Europe could represent a driving force for Samsung’s strategy, also with the help of Romanian consumers, who are always eager to try its innovative products and services. Julia Kim, President of Samsung Electronics Romania and Bulgaria talked to Business Review about the success story behind Samsung Electronics Romania and provided insight into the company’s approach to sustainability, one of its top priorities both locally and globally.

What can you tell us about Samsung’s current worldwide operations?

Despite the macroeconomic uncertainties, which are likely to persist, we have managed to obtain record revenues each quarter so far this year. In the third quarter, revenue grew 3.8 % to 76.78 trillion won (USD 54 billion). Specifically, the smartphone business posted solid profitability as demand increased following the release of the foldable phones and new wearables. Even though the eco‑ nomic contraction has hit demand for consumer electronics, we expect our annual revenue to exceed the histori‑ cal high of 2021.

What is the story behind Samsung’s success in Romania?

Samsung Electronics Romania emerged as a fully autonomous sales subsidiary in June 2010, at a time of general growth for the IT market in South‑East Europe. Its success here is the result of a very good mix: a grow‑ ing market, a solid team that brings Samsung’s vision, mission, and values to life, and tech‑savvy consumers look‑ ing for a brand that puts their needs first and offers quality and inspiration. And it is precisely the fact that Romanian consumers appreciate innovation and quality that has allowed us to maintain our leading position in the mobile and visual displays categories.

What are the pillars of the company’s strategy?

They include customisation, connectivity, sustainability, and a peo‑ ple‑first approach, which means understanding that each person is unique and that they all want to customise their devices to suit their lifestyles. In response to this, we gradually introduced new prod‑ ucts like the Bespoke Jet™ vacuum and Bespoke Washer and Dryer, expanding our line‑up to every room in the home to offer consum‑ ers more ways to customise their spaces. We have also expanded our Lifestyle TVs series, which features the latest technology and increased customisation options, allowing users to express their personal styles and access tailored video and audio experiences.

A better future requires seamless connectivity. As a founding member of the Home Connectivity Alliance (HCA), which brings together various smart home appliance manufacturers, we aim to foster greater interoperability between devices across brands to give consumers more choice and to enhance the security and safety of products and services. Through our SmartThings app, users can control more than 40 functions in 15 product categories from 13 brands, including Samsung Electronics. I men‑ tioned sustainability as being a main pillar; on the one hand, that means building sustainability into the ways customers experience our products, and on the other hand, it involves expanding the use of recycled materi‑ als to include all mobile products and home appliances over the next three years.

One of the key statements made by Samsung Electronics is “We create a culture of infinite possibilities.” How does the concept translate to innovation for its customers worldwide?

Behind any product launch, whether it's a new phone, a new type of TV or a range expansion like the Bespoke home appliances, there are entire research teams working hard so that the innovations we bring to the market can really add value to the lives of our con‑ sumers. Throughout the process, we also rely on the feedback we receive from consumers as we carefully study their desires and their expectations, but also new ways in which we can provide them with new experiences and open up infinite possibilities.

I think it's also important to mention that our culture of infinite possibilities has a new layer, as we are now increasingly focused on a future built on everyday sustainability. This means that we use in‑ novation to respond to the needs of our consumers, in Romania and

worldwide, but also to empower people to reduce their carbon foot‑ print and make positive changes towards a better tomorrow. And let me give the readers an example of how we integrate sustainability into our culture: to eliminate battery waste, we’ve launched the So‑ larCell Remote with a built‑in solar panel that can be charged during both day and night. The latest version of the SolarCell Remote gets electricity from radio frequencies in devices like Wi‑Fi routers and it will be included alongside more Samsung products, including TVs and home appliances, with the aim of eliminating more than 200 million batteries from landfills.

How has your portfolio developed over the years and how what is your view of the Romanian consumer?

Based on our data, Romanian consumers make their purchase decisions based on three key criteria: price, quality, and sustain‑ ability. They spend their incomes on food, savings, and investments, but also—depending on budget constraints—on experiences (relaxation, entertainment, etc.). They are also willing to pay extra for quality because they really ap‑ preciate innovation, which for us translates into very good results in the premium area. If we’re talking about young Romanian consum‑ ers, we know that they are looking for means of self‑expression. They like individualised shopping experiences and pay a lot of atten‑ tion to brand ethics and corporate responsibility.

Customers are at the core of our strategy, so we are constantly adapting and expanding our portfolio according to their needs and expectations. Our services and products now cover much of what people’s current needs mean, from high‑performance phones for multitasking to customisable electrical appliances, including cutting‑edge heat pumps to provide people with more comfort.

What are some similarities and differences between the Romanian market and other markets on which you operate in the CEE region?

Romania, just like Bulgaria where we also operate, is a growing tech hub in Eastern Europe, and both countries have been successful in creating an attractive business environment. Both Romania and Bulgaria have a lot of potential for further growth, including in the smart home market area. Two years ago, I had the opportunity to coordinate the development of Samsung’s business in Hungary, a country that is on its way to becoming a leading digital technology hub, with consumers who, just like Romanians, are eager to try our innovative products and services. How has this year been for Samsung in Romania in terms of achievements, financial results, and investments?

Although global economic activity is experiencing a slowdown, we have managed to continue to grow and develop in several segments. In the smartphone segment, Samsung’s market share continues to be at over 50% in terms of units sold. In the premium segment, one‑ third of the phones sold on the market are Samsung devices. This demonstrates Romanian consumers’ affinity for premium Samsung products, which have state‑of‑the‑art specifications.

In terms of TVs, the company has a market share of 42 % of the total market in terms of value. We continue to see positive develop‑ ments in this segment as a result of the increasing consumer interest in Smart TVs and connectivity, as the technology behind these devices now offers users unique viewing experiences.

How important is Romania for Samsung and what is the country’s weight in the company’s portfolio?

As already mentioned, Romanians are very open to new technologies, something that is also reflected by the increases recorded in sev‑ eral business segments, including smartphones and consumer elec‑ tronics. Moreover, our data and recent studies show that Roma‑ nians are increasingly interested in investing in a Smart Home, seeking intelligent solutions for their homes that will not only provide them with more comfort, but also help them save energy. Taking all these aspects into account, we can see that the Romanian market has a lot of development potential, and therefore, it holds major strategic value for us.

What are your longer-term plans in Romania?

We are, of course, focused on strengthening Samsung’s position as a leader on the technology market. We will continue to provide Romanian consumers with products and solutions designed to bring them new experiences and new alternatives for a higher quality of life. We also want to bring AI‑based technologies closer to people; as examples, I would mention the upcoming Bespoke washing machines with AI Ecobubble (a function that achieves the same level of cleanliness with lower energy consumption). We are also committed to launching 100% Wi‑Fi‑enabled appliances by the end of 2023 to ensure access to SmartThings Energy, an easy‑to‑use, app‑controlled smart metre service that helps users reduce energy consumption. And of course, our plans also include guaranteeing the best performance you can get in the smartphone world through the launch of new flagship phones and accessories.

Setting the stage for sustainable living

Samsung Electronics is tackling climate change through a complex and comprehensive approach. Achieving net zero direct and indirect carbon emissions by 2050 and developing carbon capture and utilization technologies to reduce emissions are some of the strong commitments the company announced recently as part of its new sustainability strategy.

By Anda Sebesi

This fall, South Korean manufacturer Samsung Electronics announced its new environmental strategy, a comprehensive effort to join global efforts to tackle climate change. It includes commit‑ ments to achieve enterprise‑ wide net zero carbon emis‑ sions, plans to use more renewable energy, as well as in‑ vestments in new technologies that will allow the company to develop energy‑efficient products, increase water reuse, and implement carbon capture technology. Samsung Electronics has also joined RE100, a global initiative dedicated to pursuing 100% renewable energy. As part of this commitment, within five years the company plans to match the electricity needs of all the international markets where it operates outside of Korea with renewable energy generation.

“The climate crisis is one of the greatest challenges of our time, and the consequences of inaction are unimaginable. Every one of us must contribute to the effort, including businesses and govern‑ ments. Samsung is responding to the threat of climate change with a comprehensive plan that includes reducing emissions, new sustain‑ ability practices, and the development of innovative technologies and products that are better for our planet,” said Jong‑Hee Han, Vice Chairman and CEO of Samsung Electronics.

Furthermore, in September this year, at the International Con‑ sumer Electronics Fair (IFA), the company unveiled its vision for adopting a smart lifestyle in order to provide a sustainable future for next generations. The challenging context of the recent years has led consumers worldwide to become increasingly aware of their impact on the environment and eager to adopt a greener and more respon‑ sible behaviour. They want to actively contribute to the creation of a more sustainable environment and lifestyle, and they want to use brands with whom they share the same values in terms of sustain‑ ability. “Consumers have an increased need for sustainable alternatives and we are happy to meet their needs by offer‑ ing them the most up‑to‑date smart home appliances, which generate energy savings. By using efficient home appli‑ ances that are synergetic with our SmartThings solution, we want that home experience to be genuinely sustainable,” said JaeSeung Lee, president and manager of the Digital Appliances Division at Samsung Electronics. The environmental commitment made by Samsung Electronics includes an enterprise‑wide effort to enhance resource circularity throughout the entire product lifecycle, from raw material sourcing to recycling and disposal. The plan also details investments in new technologies to reduce emissions from process gases as well as to reduce power consumption in consumer products. The com‑ pany also aims to explore carbon capture and utilization technolo‑ gies and tackle harmful airborne particulate matter.

In acknowledgement of the need for innovative approaches around environmental sustainability, Samsung Electronics will invest over KRW 7 trillion (about USD 5.1 billion) in its environmental initiatives by 2030. The investment figure will be aimed at reduc‑ ing process gases, conserving water, expanding electronic waste collection, and reducing pollutants and excludes costs related to the expansion of renewable energy use.

A FOCUS ON SELF-SUSTAINABLE HOMES

Samsung Electronics seeks to become the No.1 brand when it comes to energy efficiency. To do this, the company has intensified its ongo‑ ing efforts and collaborations in order to provide its customers with solutions that can help households cut their energy consumption down to zero. In addition, Samsung’s brand vision is to create a com‑ fortable, energy self‑sufficient, and minimum‑emission home. In its

attempt to become a market leader in the energy efficiency technolo‑ gies segment, Samsung has developed partnerships with companies that have similar goals. For example, together with Patagonia, a US‑ based company specializing in outdoor clothing and gear for silent sports, Samsung developed a new washing machine technology that reduces microplastic pollution generated from clothes by up to 54%.

At the beginning of 2022, Samsung launched the SmartThings Home technology, laying the groundwork for the development of a genuinely sustainable home. By combining appliances that are connected to services like SmartThings Energy and the AI En‑ ergy module, users can optimise their energy consumption while maximising their savings. Currently, SmartThings Energy works on about 40 Samsung home appliances that can be activated using the SmartThings app, including washing machines, dryers, dishwash‑ ers, air conditioners, vacuum cleaners, air purifiers, ovens, cooker hoods, cooking stoves, microwaves, TV sets, and energy counters. SmartThings is thus a big step forward towards a sustainable future, which Samsung intends to contribute to through its home appliances. The company also aims for 100 % of its imported goods—like fridges, washing machines, residential air condition‑ ers, and eco heating sys‑ tems—to be connected to the SmartThings app in the near future.

The company has also come up with another sustainable innovation: in partnership with Qcells, it developed Net Zero Home, a self‑ sustainable home that can generate and store energy from solar panels in order to power all Samsung equipment controlled through the SmartThings app.

“Through its most recent innovative products and services, Samsung offers its customers greater ope‑ ness, connectivity, and efficiency when it comes to their day‑to‑day user experience. We therefore continue in our mission to search for revolution‑ ary solutions that can support people’s lifestyles, bring new forms of entertainment, and encourage sustainability through the different ways in which we care for our planet,” says Benjamin Braun, Chief Marketing Officer at Samsung Europe.

HELPING PEOPLE ADOPT A SUSTAINABLE LIFESTYLE

The design for Samsung’s smart home appliances is based on two fundamental concepts: being sustainable and helping people save money and reduce their carbon footprint. The company’s Bespoke product range and its Digital Inverter technology are great examples. The modular structure and replaceable panels of the Bespoke refrig‑ erators extend their lifecycles and hence reduce waste from electri‑ cal and electronic equipment (WEEE). After 25 years of intensive research, the Digital Inverter technology contributes to the increase of home appliances’ energy efficiency, performance, and durability.

The sustainability of a brand is closely linked to the experience it provides to its customers. With that in mind, Samsung Electron‑ ics decided to offer a 20‑year warranty—the longest warranty pe‑ riod ever offered by the company—for its Digital Inverter engines and compressors. This way, Samsung increases the reliability of its products and confirms its com‑ mitments to reducing electronic waste and promoting sustain‑ ability. Users are also encouraged to make greener decissions by using the SmartThings Energy app, which monitors diferent usage patterns and provides real‑time data that helps them reduce energy consumption. Accord‑ ing to company repre‑ sentatives, all Samsung products with a Wi‑Fi connection will have access to the SmartTh‑ ings Energy app by 2023. Plus, Samsung will bring an additional 10 % energy saving capability to all its appliances, to reach the highest energy saving standard, A+++.