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Samsung in drive to be HK buyers' first choice

The electronics firm is intent on winning the hearts of consumers

Its South Korean parent firm is a world leader in semiconductors, finance, and trade and services. Yet Samsung Electronics Hong Kong's driving ambition is to become consumers' first choice when buying a mobile telephone, television or stereo component.

Kim Young-ha, managing director of Samsung Electronics' Hong Kong operations, said increasing brand awareness in the city's consumer electronics market remained a work in progress for the company.

'The Samsung brand has not yet reached a satisfactory level of awareness in Hong Kong,' said Mr Kim, who was transferred to Hong Kong in March, having been at the helm of the company's marketing team in the mainland since 1996.

To date, electronics giant Sony has had the upper hand when it comes to capturing the hearts of Hong Kong's electronics buyers - the Japanese firm's name is usually the first a buyer will ask for when hunting for a TV or notebook computer.

This was the type of instant name recognition and brand trust that Samsung wanted to achieve, Mr Kim said, adding that it could be done.

Samsung has already made significant headway in the mobile-phone market, where Nokia, Motorola and Ericsson used to be the only choices.

Recent market estimates from research firm Gartner showed that Samsung had become the world's third-largest supplier of mobile telephones, behind Nokia and Motorola.

The South Korean firm is also ahead of Siemens, the Sony Ericsson joint venture and hometown rival LG Electronics.

Samsung has milked this rise in market share, with aggressive marketing and promotional campaigns that have spanned print, billboards, television, radio, the Web, sporting events and cinema placements.

Remember Nokia's banana-shaped telephone in the first Matrix film? Samsung has elbowed Nokia out of the picture in the sequel with its own mobile phones, while pitching its flat screens. This is an example of the intense, value-added campaign Mr Kim brought to Samsung on the mainland and the type he is undertaking in Hong Kong.

'Samsung is committed to growing its brand equity through an institutionalised approach to marketing and continued investment in its people, products and the communities in which it operates,' he said.

In the mainland, Mr Kim spearheaded the buildup of Samsung's brand image by sponsoring the World Cyber Games, the Beijing International Marathon and the Chinese delegations which attended the most recent Olympic and Asian Games.

In Hong Kong, the company sponsored this month's Action Asia Challenge for running, hiking, ocean kayaking, climbing, abseiling and mountain biking enthusiasts.

'But it is with the big retail chains in Hong Kong, like Fortress, where we need to do the most ... to enhance our brand,' Mr Kim said. 'We want to strengthen our channel relationships.'

Samsung's revenue in Hong Kong last year reached HK$1.2 billion on the back of rising demand for its mobile phones, colour televisions, computer monitors, notebook computers and refrigerators.

Despite the Sars outbreak and the lingering economic downturn, the company expected to record a 40 per cent increase in sales this year, Mr Kim said.

He said the company's 63-inch, PS-63P3H plasma television display, which cost about $150,000, had become a huge seller in Hong Kong, even with its hefty price tag.

Dozens of the televisions have been installed in many MTR stations, including Admiralty, Tsim Sha Tsui and Causeway Bay.

Mr Kim said the high demand for this product proved Hong Kong remained 'a sophisticated market' which could be counted on to become a showcase for high-technology products.

Samsung's Hong Kong operation, established about 10 years ago, was set up to focus on sales and marketing initiatives to promote the company's consumer electronics goods throughout the mainland, Mr Kim said.

Since then, the company has managed to post an average growth of 50 per cent a year in Hong Kong.

It is Samsung's hope the Hong Kong market would also become a standard bearer for the company's brand worldwide, Mr Kim said.

Global consultant Interbrand has ranked Samsung's brand as the 'fastest growing' in the world for the second consecutive year.

It said Samsung's brand value had more than doubled in three years, from US$5.2 billion in 2001 to $10.8 billion this year, making it the world's 25th most valuable brand.

This Christmas, Mr Kim and the Hong Kong operation's more than 100 staff will discover whether their work is paying off - if buyers flock to stores and ask for the Samsung brand.

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