18 June 2004 21:50
Mobile phone gadgetry connects with Russians
By Kim Jung-min ST. PETERSBURG, Russia - To tourists, this city of 4.7 million people is a repository of national
treasures that narrate Russia's cultural heritage.
To Lee Jae-hong, head of Samsung Electronics Co.'s St. Petersburg office, it is "another important
battlefield" for Russia's cultural future - and his company is starting to win. St. Petersburg and Moscow
boast the highest mobile phone penetration rates in Russia at 70 percent. With incomes and consumer tastes rising, the
demand for high-end cellular phones is increasing, enabling Samsung to bolster sales.
In the first quarter this year, Samsung ranked No. 1 on the back of strong sales of mobile phones featuring color
displays and cameras, according to Russia-based Mobile Research Group. Sales totaled 168 million euros, 1.4 times as
much as those of Nokia of Finland, with the border just a three-hour drive from St. Petersburg.
The Russian research company attributed Samsung's success to its high- end marketing strategies targeting the
rapidly expanding middle class. The average retail price of Samsung's mobile phones is 148 euros, far above that of
Nokia's average 123 euros. "There's been a shift in Russian consumers' patterns toward high-end
products, which makes the market more attractive," said Lee.
This year, Samsung is aiming to sell 5 million mobile phones, accounting for 25 percent of all sales in the market.
Samsung's mobile phones with built-in cameras have gained popularity among those in their mid-20s and 30s. Ask Lena
Privalova. The 22-year- old shop assistant said she had to save up for her Samsung mobile phone. "It's a bit
expensive. But I like the design, which is really cool," said the St. Petursburg resident. Korea's No. 3
handset maker, Pantech, began selling in Russia in January and said it has sold more than 400,000 units of its four GSM-
based models through April. With 12 new models scheduled for release in the second half of the year, Pantech expects to
sell more than 1 million units this year in Russia, taking 8 percent of the market. "We're betting on
Russia's huge upside potential in the telecom industry, which is the fastest growing market in the world,"
said Pantech President Lee Sung-kyu. (jungmin@heraldm.com)
[The Korea Herald] |
RUSSIA IN FACTS
