'Project Prism' 1-Year On-Site Visit
Concerns Over Strengthened Protectionism Post-COVID-19
Vice Chairman Lee Jae-yong Emphasizes Leadership Role
[Asia Economy Reporter Dongwoo Lee] "The global home appliance market in the first half of the year was better than expected despite COVID-19. The problem lies after the fourth quarter."
Kim Hyun-seok, President of Samsung Electronics (Head of the CE Division), said this on the 15th during his visit to the Samsung Digital Plaza Gangnam Main Store in Seoul, marking one year since the announcement of 'Project Prism,' a new consumer-centric home appliance business direction.
At the event, President Kim stated, "Contrary to concerns about COVID-19 in the first half, the situation improved more than expected from the second quarter," adding, "The second half is expected to see growth in the revenge consumption market, so the third quarter looks favorable, but difficulties are anticipated after the fourth quarter."
He continued, "The fourth quarter will be influenced by the global economy, consumer sentiment, and unemployment rate," and said, "We are deeply considering how to respond successfully. It is true that when the economy freezes, it becomes difficult no matter how hard we try."
President Kim expressed concern, saying, "One of the changes caused by COVID-19 is that while globalization was the focus in the past, regionalization has become a strong issue and a major variable after COVID-19," adding, "If protectionism intensifies, there may be demands to build factories domestically, tariffs may be raised to protect domestic industries, and various other issues could arise."
He emphasized the role of leadership in the current crisis. President Kim said, "As a professional manager, necessary investments do not occur in uncertain times," and added, "Vice Chairman Lee Jae-yong can fulfill the role of a leader who sees the big picture and provides direction."
President Kim added, "Having a leader is ultimately necessary for seeing big trends, making massive investments, and deciding how to distribute and concentrate business capabilities," and emphasized, "In times of great uncertainty and difficulty, the owner's leadership is crucial."
Meanwhile, on the same day, he reviewed the sales trends of new products and unusually revealed soon-to-be-launched new products to store employees, gathering feedback from executives and staff.
Project Prism symbolizes Samsung home appliances strengthening their status as a lifestyle appliance brand by reflecting diverse consumer preferences, just as light passing through a prism projects various colors.
Earlier, Samsung Electronics officially launched the era of 'customized appliances' by unveiling the first result, the 'Bespoke' refrigerator, in June last year. In January this year, they introduced the 'Grande AI,' which showcased innovation in washing and drying experiences based on artificial intelligence, and in July, they launched the luxury refrigerator 'New Chef Collection,' expanding the Bespoke concept from the exterior to the interior.
Since its introduction, the Bespoke refrigerator has grown about 30% year-over-year in cumulative sales for the first half of the year. Washing machines and dryers also achieved sales growth in the domestic market of approximately 35% and 60%, respectively, year-over-year in the first half, thanks to the launch of Grande AI.
The store visited on the day displayed the 'Cube,' a small specialized storage refrigerator scheduled for release in September, and 'The Terrace,' an outdoor lifestyle TV launched in the U.S. last May. These products are regarded as the next works of Project Prism.
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