Samsung Electronics plans to use its digital media distribution channels to increase sales of its home appliances in key markets.

Park Jong-woo, president of the digital media business for Samsung, told the Korea Times: “We will raise home appliance sales in key markets by using our digital media distribution channels, while strengthening distribution partnerships with regional dealers”.

Last month, Samsung appointed Almo and Climatic, America’s leading appliance distributors, for its home appliance products in the saturated but highly-competitive market of North America.

Samsung plans to increase its home appliances sales by over 30 per cent globally and raise its marketing budget accordingly.

In the past, Samsung has failed to increase its global share because of its hesitancy in allocating cash for the development of related core technologies. Its competitor, LG, has always allocated five per cent of its total sales to research and development of its home appliances. “Samsung’s R&D budget for home appliances was known to be less than one per cent of its total sales, as it gave greater focus to memory chips and flat screen TV business,” said a company insider. X

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Korea Times