S. KOREAN ELECTRONICS MAKERS ENJOY SALES BONANZA IN RUSSIA
SEOUL, May 25 Asia Pulse - South Korean electronics makers are enjoying a sales bonanza in Russia where the economy
is currently booming on rising international oil prices, industry sources said Tuesday.
Russia, where 60 per cent of all industrial investment goes to its energy sector, has benefited from strong oil
prices.
Samsung Electronics Co. (KSE:05930), South Korea's No. 1 electronics firm, expects its sales in Russia will
surge to 3 trillion won (US$2.55 billion) this year, compared with 1.7 trillion won last year, thanks to an upswing in
sales of cellular handsets, TVs, refrigerators and printers.
Samsung Electronics is aiming to take top spot in the markets of eight items, including mobile phones, laser printers
and microwave ovens, in Russia.
Notably, in the first quarter of the year, the company ranked second after United States-based Motorola Inc. in the
Russian cellular phone market with a 22.2 per cent share and is now targeting sales of 5 million units, or a 25.0 per
cent share, to become the leader this year.
LG Electronics Inc. (KSE:66570) expects its sales to grow over 70 per cent in line with the brisk sales of its mobile
handsets, vacuum cleaners and stereos. Its cell phone sales skyrocketed over 200 per cent on year in the first quarter,
with its sales of washing machines, microwave ovens and vacuums more than doubling.
LG Electronics plans to make its washing machines and lap top computers No. 1 products in Russia, as air
conditioners, vacuums and stereos were last year.
Daewoo Electronics Co. hopes for a 30 per cent increase in sales in Russia as its intensive marketing strategy has
been showing signs of success. It saw its sales in the country climb over 20 per cent last year.
Daewoo Electronics is now strengthening marketing activities for its high-end home appliances, such as "vitamin
air conditioner" and nano-silver refrigerators.
The Russian economy has grown fast since the 1997 Asian economic crisis and the country's electronic appliances
market expanded to an estimated $8 billion in 2003, compared with $6.1 billion the previous year.
(Yonhap)
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