Mr. Sung Yoon, President and CEO, Samsung Electronics Africa, recently met with the media. At this occasion, he fielded questions on what Samsung is doing to combat counterfeiting, competition, Nigeria’s recession. Also vital was the company’s innovative strategy to remain dominant among other issues. CHIMA AKWAJA brings excerpts.
Last year, your company downsized its staff strength. Does this suggest that the business is not doing well in Nigeria?
Samsung is strategically re-aligning its business operations in Africa. By centralising operations and resources, we plan to introduce greater levels of efficiency on the continent. This strategic move will also enable us to focus more significantly on our product, sales and marketing functions. Samsung Electronics Africa remains committed to its clients, employees and other stakeholders across Africa and West Africa in particular. We will continue providing the high level of quality and service which our stakeholders have come to expect from us.
Nigeria has been declared out of recession, has this positively impacted on your sales?
Research and design have always been a major part of our business, with local insight as a key factor. This strategy has continued to help us to understand interpret or anticipate the needs of people. Even as the country is out of recession, we can say that, to a great deal, this has positively impacted on our sales. Though, we can only pray for the best.
The competition is so intense in the Nigerian market, what strategies do you have to remain relevant?
Innovation and lead. Every year, we invest heavily on research and development (R&D) globally. In 2014, Samsung spent $13.4 billion, over $14 billion in 2015, and $13 billion in 2016. In order to maintain our market leadership in Nigeria, we obtain feedback from our target audience through various channels, including ground market research and online/social media. Listening is just one of the ways of ascertaining our customers’ needs and pain points. Samsung processes feedback from the field on a daily basis through partners, dealers, trainers, as well as independent reviewers.
We are refocusing our vision and strategy for Nigeria. Not only will this see the company introduce new levels of efficiency, but it will also continue to deliver the highest quality products and services. We have come up with a great line up of products – for both Consumer Electronics and Mobile that are aimed at meeting our consumer needs in terms of seamless connectivity and efficiency.
What has been your sales/market share in the past five years in this market?
Samsung Electronics West Africa is not at liberty to provide its individual results as a subsidiary. Samsung headquarters publishes the results of the business’ performance every quarter. This information is available on the website.
How are you dealing with grey market activities in Nigeria and what are your strategies to combat people faking your products?
Counterfeiting is a global scourge that is not peculiar to Samsung. We are consistently innovating and enhancing the quality of our products to ensure they are not easily counterfeited. It is a price quality brands have to pay. Samsung is very active in Nigeria, and our products have continued to do well in Nigeria and other markets around the world. However, counterfeiting has not significantly affected our dedication to meeting consumer expectation or delivering on our growth projections.
With consistent attention and numerous counter-measures in place, we hope to surmount this hurdle. Even though we cannot give a precise figure on the percentage of counterfeit Samsung phones in the Nigerian market, the impact of grey market is significant in Nigeria. However, we are joining forces with relevant authorities to address the issue.
Have you considered establishing a manufacturing plant here? If not, what is stopping you?
We remain committed to the Nigerian market and implementing sustainable strategies to the benefit of our customers and various stakeholders. At this point we have no plans on bringing a manufacturing plant to Nigeria. Innovation has always been a major part of Samsung’s brand promise, and so operating in a forward-thinking country like Nigeria, which is eager to adopt new technology, is a major pro.
Doing business in Nigeria, just like any other market, is characterized by both advantages and disadvantages, which should not be overlooked. With the current trend of things in the country, the pros outweigh the cons. This is a key consideration. Nigeria’s economy still remains one of the best for our operations.
The West African market is quickly becoming a lucrative market for manufacturers in the mobile and consumer electronics line. How is this impacting on Samsung’s market leadership? How much market share does Samsung currently possess in the Nigerian mobile market?
We have placed great emphasis on offering quality products to our customers. Moving forward, we will continue to focus on providing quality products and solutions. We have a wide selection of products that suit all our consumers’ needs, and we will continue to improve on this across our West African market. With more than 20 per cent of the smartphone market, we have cemented our leadership in the mobile space.
In TVs, we continue to be the global brand leader, for twelve consecutive years and we are leading the global refrigerator market. In 2017, we stayed focus on our mission to deliver meaningful innovation to consumers and businesses. This commitment has helped us become the sixth most valuable brand globally. Thanks to our loyal customers we have rebuilt our mobile brand and market share position with the best-selling and best reviewed smartphones.
What are the major challenges that militate against the sales/purchase of premium products in Nigeria?
I really don’t feel there are any insurmountable challenges, because our premium products are for a niche market, which does not cover all the other segments. In this segment, we have people who have travelled all over the world and they know what is available around the world. At Samsung, we try to bring these products, which are available around the world, to our local consumers in Nigeria. As the economy develops, the purchasing power of a lot of people will increase and many of these people will look for niche products and services.
What is next in your plan for Nigeria/Africa and what date will the Samsung Galaxy 9 be released?
Samsung Electronics West Africa (SEWA) is refocusing its vision and strategy for Nigeria, the West African sub-region and the continent in general. The exercise is geared towards stimulating a higher level of operational efficiency, with the overarching objective of providing customers with the highest quality products, sales and services. Samsung will unveil the Galaxy S9 at MWC 2018 in February. We are not able to provide you with further details at this moment.
Edo Govt Busts Child-Selling Syndicate In Benin, Recovers Week-Old Baby
Don’t Blame Edo People If They Resort To Self-Defense, Obaseki Warns
My Husband “Tricked” Me Into Leaving His House- Divorce Seeking Woman Tells Court
Germany To Russia: We Will Protect Our People Online, Offline
Obaseki Is Repositioning Edo’s Economy – Imansuangbon
National Stadium Lagos: Nesiama Appointed Co-Chair, Ministerial Implementation Committee
Court Remands Man, Friend For Allegedly Defiling His Stepdaughter
EDUCATION22 hours ago
2020 UTME: JAMB Shifts Admission Date To Sept 7
NEWS22 hours ago
Edo, Ondo Guber Under Threat As Appeal Court Delivers Conflicting Judgements On Parties Deregistration
COVER STORIES10 hours ago
Kashamu: People Can Mourn Me The Way They Like When I Die – Obasanjo
NEWS23 hours ago
Gov. El Rufai Appoints Board Members, Others For Agencies
NEWS23 hours ago
We’ll Follow Dogara To APC, Says Youth Group
NEWS23 hours ago
Edo 2020: Ize-Iyamu Promises To Involve Traditional Rulers In Security Of Lives
NEWS23 hours ago
Edo 2020: Gov. Obaseki Describes Destruction Of His Commissioner’s House As Barbaric
NEWS8 hours ago
Step Mother Chained Boy In Animals Yard For 2 Years