‘Green’ design attracts customers to appliances
WITH about 206,000 people employed in 197 offices across 72 countries, Samsung has leveraged new technology to create products that inspired consolidated sales of some $143.1bn by the end of 2011.
And with a key slogan “Inspire the World, Create the Future” integrated into the corporate vision of Samsung Electronics — one that is at the cornerstone of the company’s quest to enhance the lives of customers, partners and employees worldwide — the company’s continued growth is inevitable.
The consumer electronics division, which contributes approximately half of the Group’s South African revenue, comprises TVs, audio systems and household appliances such as refrigerators, washing machines, dishwashers, microwaves and vacuum cleaners, to name but a few.
“The core of our success in the consumer electronics category will be the continued development of smart appliances that are connected, sensory aware and possess the ability to be remotely managed and that can self-diagnose,” says Matthew Thackrah, Deputy MD and Head of Consumer Electronics and IT Solutions at Samsung Electronics SA. “Smart also means green — and all our products are developed with the environment and energy efficiency in mind.”
In fact, much of Samsung’s international achievement can be traced back to the green management initiative it announced three years ago. The Group decided to make environmental guardianship a priority across all business units by applying technology in innovative ways to achieve eco-friendly development. The organisation is on track to become a leading eco-friendly company by 2013, and in line with this, Samsung created an in-house eco-rating for its products that will ensure 100% of its range satisfies the “Good Eco-Friendly” tag by next year.
“Over the past 18 to 24 months there has been a drive to reduce our environmental impact,” says Thackrah. “By 2011 we had already achieved ‘Good Eco-Friendly’ standard for 97% of our products. Samsung can also lay claim to being the world’s leading environmentally friendly electronics producer, a title that goes hand in hand with being the world’s leading consumer electronics company.”
Samsung’s production and product design innovation have assisted in significantly reducing the Group’s carbon footprint. As of 2011, new Samsung products are on average 25.6% more energy efficient compared with 2008 levels, contributing to an approximate 17.630-million tons’ reduction in greenhouse gas emissions in 2011, compared to 2008. The challenge for the South African consumer electronics division is to reduce its carbon footprint across its operations as well as educate consumers on the benefits of the Group’s eco-friendly products.
Distribution is one area where Samsung Electronics SA contributes to the reduction of indirect greenhouse gas emissions. Samsung works behind the scenes with local logistics partners to deliver products more efficiently to reduce their emissions.
“Where we can make a difference is through more direct delivery,” says Thackrah.
“Instead of the stock arriving at port, being transported to a warehouse, unpacked and sent by truck to the retail customer, we are improving direct distribution. This not only decreases the amount of delivery time, but ensures a more green and sustainable approach to our logistic processes. In fact, the objective is that 50% of deliveries should be direct to our retailers’ warehouses by Q2 2013.”
As Samsung Electronics SA is among the top 20 largest importers in the country, measured by SARS over Q2 2012, this will have a huge impact in terms of reducing distribution costs, lessening the load on the country’s overworked road infrastructure and reducing the negative effects on the environment.
Another main focus is to educate consumers on the energy efficiencies they can achieve through Samsung’s “best in category” appliances.
“We have two big drives at the moment,” says Thackrah. “The first is our Deep Foam with Ecobubble™ technology washing machine range.”
The range achieves energy savings of up to 70% on compressors save up to 40% of the energy compared to conventional fridges, due to consistent energy usage.
Consumers can also reduce their electricity bill by taking advantage of major advances in television and computer screen technologies. “We have made significant progress towards incorporating the latest LED technology into our TVs and monitors. The latest LED screens are up to 46% more energy efficient than old back-lit LED screens,” says Thackrah.
Samsung has been able to adapt to the changing market dynamics through innovation, and has taken a leading position in future technology areas. The company has cultivated a global research and development competence concentrating on emerging technologies, striking designs, functionality and stringent eco-friendly standards.
Samsung believes in investing in developing technology that is specifically relevant to the South Africa and African market — technology that meets the needs of the African people’s local environment; to live lives that are easier, healthier, and more connected. In this way, Samsung inspires the future of the African consumer electronics industry, and serves as a signpost towards how it will evolve in the future.
“Putting our South African and African customers’ requirements first means taking relevant steps — even if one at a time — to ensure the highest level of product compatibility and service is maintained. This is a key business imperative for us and one we will continue to drive into 2013. The Samsung brand is all about leadership, innovation, relationships and integrity and we are committed to driving each of these pillars into our African outreach — inspiring new directions,” says Thackrah.
It is this innovation that appeals to South African consumers who have elevated the Samsung brand to number one in many of their product lines. A recent report by GFK, one of the world’s leading market research companies that provides insights into the consumer goods markets, hailed Samsung as the top company in the country’s TV business, with a 40% market share.
“Our products are well received from a design and functionality perspective and the fact that we are also environmental leaders is a welcome bonus,” says Thackrah.
“Samsung frequents the top three positions in the GFK market share statistics (by value) for our audio systems as well as our refrigerators.”
The Group’s sales success means that millions of televisions, fridges, washing machines and other consumer appliances and electronics make their way into South African homes and businesses each year.
“For Samsung, understanding the consumer
We have made significant progress towards incorporating the latest LED technology into our TVs and monitors
purchase criteria and the broader product lifecycle is key as it not only enables us to ensure that we can fulfil our customers’ needs in terms of functionality, but also their green aspirations through our recycling and disposal strategies,” adds Thackrah.
The industry is competitive — but Samsung have managed to stay ahead due to their unequivocal innovation and market foresight, coupled with their smart product range and focused marketing initiatives.
“There is a clear drive towards technology and the increased need for fuller, engaging lifestyles. This presents us with a unique opportunity to continue to bring innovative products to the continent and to supply the market with exactly what is expected of us — highend, groundbreaking products that meet consumer needs and wants effectively,” he concludes.