Mobile Solutions

What is the importance of the Colombian market for Samsung’s strategy in Latin America?

The Colombian market is already a big one but still has huge potential to grow. In terms of country size and population, which are already formidable, it is even more attractive for its growth potential. We are investing a great deal and studying how to be a better member of Colombian society. The Colombian market is very important for competition between retailers. If we prove ourselves in the Colombian market, we can prove ourselves in the global market. In this sense, the Colombian market is very important.

Which business lines have the most potential in Colombia?

The mobile device sector is definitely the most attractive. Within our business portfolio, mobile is the highest portion for our business. Even though the penetration in mobile devices here is already quite high, we have room to grow technology wise—in 4G and 5G, for example. Smartphones have already penetrated the Colombian market, but the LTE technology has a way to go. We are focusing on how to supply LTE and 4G technologies to Colombian society. This is where Samsung’s expertise has an advantage in Colombia.

What are some of the challenges in Colombia that are unique to this country for Samsung?

When I arrived in July of 2015, we were in the middle of an economic fluctuation, mainly in the exchange rate. At the beginning of last year the exchange rate was around COP2,000 to the USD, and at the end of last year it was COP3,000, a 50% devaluation. That impacted our business very negatively and still remains a big challenge. The macroeconomic situation is not great, and inflation has also impacted us. These are some of the challenges of doing business here. The last thing is competition. There are too many players on the provider and retail side. Competition is a factor, and the market price is ever fluctuating. The visibility level is a little low, which also factors into our business. In the short term, competition is a challenge to our business, but in the long term, it is good for us. It makes us stronger, and the competition always generates innovation.

How is Samsung partnering with local institutions?

I am very proud of what we have done this year and last. One of the things is called the Tech Institute, the principal aim of which is to utilize our facilities and technology for the betterment of Colombian society. We have already developed certain facilities and products that we are excited to share with the Colombian people. We also have a corporation with the National Service of Learning (SENA), where we set up some classrooms and they use our products to facilitate learning and teaching. We are running the smart schools format as well. This year we developed a different kind of project called Nómada, a mobile classroom. We developed some equipment and then dispersed spot tablets, TVs, and even tables. We currently have eight modules that we sent out across the country to areas that do not have access to normal classrooms. It is a great tool to approach the people that live in rural areas like the Amazon or in the mountains. We can fold it up and take the classroom anywhere we go.

What is your outlook for 2017?

There are still some economic challenges, not to mention the tax issue, but we can manage the issue and will grow in terms of sales revenue. Ten or 20 years from now, Samsung wants to be an inspirational and admirable brand. We are not just doing business without providing some solution-oriented products. We want to provide benefit to Colombia as an integral member of society, not just the economy.