Nepali Times: Do you think this is the right time for Samsung to launch the DigitAll Celebrations 2004 campaign in Nepal? KS Kim: This is the first time we made our IT product dealers assemble to display our new technology products that would be sold in the markets in the region. Our headquarters recently made a decision to set up Samsung Southwest Regional headquarters based in Delhi to cover India, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives. That is in addition to our existing six regional headquarters and it recognises the growing potential of this region to expand.
Sounds great, but is the Nepali market big enough?
Even though there is no official data, we have recorded an average 30 percent annual growth in the market, particularly in the colour tv segment.
But the political and economic crisis has caused a slump in the economy.
Overall, we believe the slowdown is temporary. But I believe the market will recover soon after the formation of a new government.
What new digital treats can we expect?
We have plasma and liquid crystal tvs, fully automatic washing machines, refrigerators, digital camcorders, DVDs, laser printers and optical disk drives among others. All of these will be available in Nepal.
Local distributors of electronic goods say their business is hampered by parallel imports.
That may be happening in case of other brands. With Samsung, our distributor is Him electronics. I don't see any problem with parallel import of our products.
So why are dealers complaining?
This may be happening on a very small scale. We conduct our business through regular channels.
You already have a tv factory in Nepal. Do you have further expansion plans?
If business grows, there will be further expansion of such facilities. It depends on the market scenario. We may expand such facilities for other products as well.
Have you faced any problem from imitation Samsung products?
This has not been a major problem for us.
Where are the Samsung products imported in Nepal made?
We have many factories around the world. For Nepal, the goods are sent mainly from Korea and some factories in Southeast Asia. High-end products are sent from Korea.
Who is your consumer-segment target?
Through the stable four to five percent economic growth in Nepal, the middle and high-income consumer groups have begun to increase and that is the right market for Samsung. We position ourselves as a prestigious brand, unlike low category Chinese or other cheap brands. Samsung distances itself from them. Our target clients are at the high-end, are highly educated with more exposure to the international market. That is why we are launching the state-of-the-art products.
Doesn't all this consumerism and planned obsolescence create a branded world?
Man has developed his lifestyle through tools. There were times when we used stones. Now, we are living in the digital era and these tools make our present lifestyle possible. Through the development of digital technology, Samsung believe it is contributing to human development.
How about the environmental impact and the pressure on natural resources?
Samsung does a lot for the preservation of natural resources. We invest tremendously in research and development of technology aimed at reduced usage of natural resources. This company is a pioneer in the support of the movement and campaign for the conservation of the natural environment.
