Samsung Electronics Promises That It Will Make Sales Of $10 Billion In Air Solution In 2020

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Samsung Electronics has made a declaration that it will make yearly sales of $10 billion in air solutions (air condition solutions and AC) in 2020 and it put out its system air conditioner.

It will try to surpass Japan’s Daikin, which is a number business in the world, by increasing B2B and repeat an example of how it surpassed Japanese TVs 10 years ago and became number 1 in the world.

Samsung Electronics held ‘Samsung AC Forum 2015’ at Samsung Electronics’ Human Resources Development Institute in Gyeonggi on the 27th and introduced new system air conditioner products and its strategies hereafter.

“Samsung’s system air conditioners are ready to go after global markets. From now on, we are going to let people know about Samsung’s technology level and innovation in 50 countries and 117 cities for 5 months.” said President Yoon Boo Geun of Samsung Electronics’ Consumer Electronics (CE) Department.

‘Samsung AC Forum 2015′, which presents future of global professional air solution business is being at Samsung Electronics’ Human Resources Development Institute in Yongin-si in Gyeonggi on the 27th for 10 days. President Yoon Boo Geun of Samsung Electronics’ Consumer Electronics (CE) Deparment is introducing goals of B2B system air conditioner markets. Yongin = Staff Reporter Kim, Dongwook | [email protected]

◇ It Will Be Possible For Samsung To Surpass Japan’s Unconquerable Fortress
Air conditioner is a field where global household appliances businesses are competing fiercely in both B2C market and B2B. It is worth $74 billion and it is dominated by Daikin with its 20% shares and other Japanese businesses such as Panasonic, Mitsubishi, Toshiba and others. According to the U.S. market research company called Tech Research, global AC markets will grow on average of 8.5% per year starting from this year until 2020.

Samsung Electronics is a newcomer in air conditioner market. Even though it is responsible for 45% of South Korean market that is worth $441 million (500 billion KRW), it is only 3% to 5% compared to global markets.

Current situations of Japanese air solution businesses

Japan’s Daikin had made $15.9 billion (1.915 trillion yen) and $1.58 billion (190 billion yen) in sales and operating profit respectively in last year. Not only in Japan, but it is an unrivaled number 1 in North America, Europe, and China and it is going to operate its new facilities, which cost them $410 million, in Houston next year. Daikin had made $3.63 billion in sales last year in air conditioner market in the U.S. that is worth $16 billion.

Panasonic is predicting that its sales will improve 11% compared to last year at $4.27 billion (513 billion yen) due to keynote centered on B2B and increase in sales in Asia. Mitsubishi and Toshiba are also expanding their air conditioner businesses by going along with a trend such as low noise and high efficiency in markets. Japanese businesses, which have been focusing on air conditioner since 1950s, have secured high technical skills that can respond to EU’s environmental standards.

President Yoon showed confidence by saying that it is definitely possible to make sales of $10 billion in by 2020. This means that Samsung Electronics has technologies to sufficiently conquer Japanese businesses and it is possible to shorten the time it promised to make sales of $10 billion by. Samsung Electronics’ CE Department is planning to increase percentage of sales of air conditioners by 30%.

‘Samsung AC Forum 2015′, which presents future of global professional air solution business is being at Samsung Electronics’ Human Resources Development Institute in Yongin-si in Gyeonggi on the 27th for 10 days. Models are introducing high-tech system air conditioner ‘360 Cassette’ that does not have blades that control direction of air flow. Yongin = Staff Reporter Kim, Dongwook | [email protected]

◇ Expansion of system air conditioner lineups
New system air conditioner products such as 360 Cassette, DVM Chiller, DVM S, and DVM S Echo that were introduced will aid Samsung Electronics to reach its goal. 360 Cassette is a circular system air conditioner where one can feel same level of air from anywhere on the ceiling. Samsung Electronics has applied booster fan, which is based on a principle of atmospheric application that is used for airplanes, for the first time in the world. It has all of product lines from 23 kW (8 horsepower) to 84 kW (30 horsepower).

Samsung Electronics is planning to implement ‘Smart Space’ by working with specialists and businesses in variety of fields such as construction, medicine and others. By using technical skills in energy reduction solution from connection between system air conditioner equipment, it will introduce futuristic buildings and management of cities that will respond to ‘Smart Home’ such as ‘security’ and ‘senior welfare’.

◇ President Yoon Boo Geun Proclaims That Samsung Electronics Will Be One Of The Best Household Appliances Business
When asked about achievement of ‘number 1 in household appliances in the world by 2015’ that was made by President Yoon Boo Geun in 2012, he said that there were many influences such as current number 1 business’s sales increasing due to M&A and others. He is referring to restructure of household appliances industries as Sweden’s Electrolux has surpassed yearly sales of $20 billion after buying General Electric’s household appliances department. He said that Samsung Electronics still needs some time to catch up to those kinds of sales, but also said from his perspective that Samsung Electronics’ household appliances department is already one of the best.


Staff Reporter Seo, Hyeongseok | [email protected]

 

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