Attendance at the Bespoke Life Media Day Event on the 21st
Aiming for Profit with Bespoke New Products... Targeting 50% Growth
Robot Commitment Shown Once Again
On M&A Questions: "Gradually Being Finalized"
Samsung Electronics is aiming to turn a profit in its DA (Digital Appliances) division this year by leading with new Bespoke products. Although it recorded losses last year due to sluggish appliance demand and rising raw material costs, the company plans to reinforce its position in the home appliance market through a premium strategy.
Han Jong-hee, Vice Chairman of Samsung Electronics and Head of the DX Division, stated at the Bespoke Life Media Day event held on the 21st at the Community House Masil in Jung-gu, Seoul, "We aim for a 50% growth in Bespoke sales compared to last year" and added, "We will continue to increase the proportion of premium home appliances that consumers trust and seek."
Among Samsung Electronics' home appliances, the Bespoke line accounts for 50% domestically and 25% in the United States. This indicates the company's intention to accelerate the reorganization of its appliance lineup centered on Bespoke products, which have become a core revenue source for the DA division.
Confidence was also expressed regarding a rebound in the home appliance division’s first-half performance, which had fallen into the red. Samsung Electronics’ DA division recorded an operating loss of 60 billion KRW last year, marking its first deficit in seven years. Vice Chairman Han attributed the losses to "various causes such as increased logistics and raw material costs and decreased demand, but we are taking these as a 'big lesson' and continuing improvement efforts," adding, "We are working hard to show good results within the first half." When asked about the expected timing for turning a profit, he said, "It is premature to specify a concrete timeline, but we are doing our best to avoid losses in the first half like last year."
Samsung Electronics Vice Chairman Han Jong-hee is answering questions at the Samsung Electronics Bespoke Life Media Day held on the morning of the 21st at the Community House Masil in Jung-gu, Seoul. [Photo by Yonhap News]
Regarding concerns about cost increases due to the expansion of eco-friendly products, he said, "There are parts where costs rise and parts where they fall due to the use of eco-friendly products, but factories are transforming through digital twins," adding, "By having robots perform tasks and processes previously done by humans, not only is process time shortened, but utility costs used in factories are also reduced, enhancing competitiveness."
He also revealed the company’s vision for the robot market. Recently, Samsung Electronics has been steadily acquiring shares in Rainbow Robotics, a robot development company. On the 15th, Samsung purchased 4.8% of Rainbow Robotics’ shares for 27.78365 billion KRW, increasing its stake from 10.3% to 14.99%. Notably, on the same day, a new shareholder agreement was signed securing call options (the right to buy shares at a specific price) on all shares held by the largest shareholder and related parties, leaving open the possibility of acquiring the company.
Vice Chairman Han emphasized, "I mentioned at the general meeting that robots are another new growth engine," and added, "We are taking one step at a time toward that direction." He noted, "Samsung Research is working to create a Samsung robot platform, and the DX division’s robot business team is active," emphasizing, "We are preparing the EX1 product to be launched this year." He continued, "Many areas are being replaced by robots," and added, "We plan to focus all our capabilities in the robotics field to find new business opportunities."
Han Jong-hee, Vice Chairman and Head of Samsung Electronics' DX Division, is answering questions at the 'BESPOKE Life' media day held on the 21st at Community House Masil in Jung-gu, Seoul. [Photo by Yonhap News]
When asked about the reason for reintroducing OLED TVs to the domestic market after 10 years, he said, "The biggest concern about OLED over the past decade was burn-in (image retention)," adding, "This has improved to some extent now, and it is generally not problematic for regular use, so we decided to introduce the lineup." He continued, "Consumer preferences have become very diverse rather than uniform," and said, "Since new displays are also moving toward preference-based options, you can see this as the reason for developing OLED TVs."
Meanwhile, in a meeting with reporters immediately after the event, Vice Chairman Han was asked about the timing of mergers and acquisitions (M&A) such as Rainbow Robotics. He replied, "(Regarding companies, fields, timing, etc.) these are highly confidential matters," adding, "Things are gradually coming together." When asked if it would be possible within this year, he said, "That is our goal, but since the other party’s position is also important, we will coordinate well together."
Industry insiders are paying close attention to when Samsung Electronics will conduct large-scale M&A after the company recorded its highest-ever retained earnings last year. Samsung Electronics has not completed any major M&A deals since acquiring Harman for 9.3 trillion KRW in 2017, but it has stated that it continues to pursue M&A steadily every year.
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