KINGDOM A PRIORITY MARKET FOR CCTVS, SAYS SAMSUNG

       Thailand has been selected as a priority market, along with Russia and Indonesia, for Samsung Electronics' new strategy to transform its CCTV business from a headquarters-direct operation to a local one.
       The change, which allows local units to use their present resources, such as manpower, service network, dealer network, market intelligence and brand awareness, is a key step to achieving the global target of joining the world's top three by 2012.
       Do In-rok, vice president for video security systems, yesterday said Thailand was chosen because of its great potential to achieve business-to-business success in supplying all kinds of CCTV products.
       "Our Thai subsidiary [Thai Samsung Electronics] is quite strong in the B2B business. With the new local operation strategy, we are able to meet the market's needs and access market segments more effectively," Do said.
       Shin Woo-chul, director of area sales and marketing for video security systems, digital media and communications, said the global CCTV market was expected to reach US$41.5 billion (Bt1.4 trillion) next year on growth of about 15 per cent.
       "Asia has enjoyed the highest growth rate for CCTV systems, at about 16.8 per cent last year to $2.9 billion in market value, while the CCTV market in Thailand is expected to experience a big increase from $72 million posted last year to $106 million projected by 2011," Shin said.
       Samsung Electronics has been in the CCTV market for 16 years.
       "Globally, the CCTV market is fragmented, with no powerful brand. The market is occupied by more than 400 players, and many of them are small companies.
       "The world market leader, Pelco in the US, has a share of only 5.5 per cent, while the top 10 players in the CCTV market globally have a combined share of less than 50 per cent," Shin said.
       Samsung Electronics ranks seventh in the global CCTV market with a 3-per-cent share.
       "We want to be at least No 3 in the market with a 5-per-cent share by 2012," he said.
       For the CCTV business, the ability to provide immediate technical support is absolutely crucial for
       success.
       Pelco, for instance, commands 10 per cent of its US market, because they have strong technical support, Shin added.
       Thai Samsung Electronics de-puty managing director Arnut Changtrakul said the launch of
       CCTV products and access-control systems in Thailand was another piece in the jigsaw puzzle for the Thai operation.
       The company is positioning itself as a total solutions provider for various product applications, including home appliances, semiconductors, digital media like audio-video and information-technology products, liquid-crystal-display panels and mobile-phone networks.
       "We expect to achieve local sales of Bt120 million from CCTV and access-control systems and a 1.5-2-per-cent market share this year," Arnut said.
       The domestic CCTV market is expected to expand 13 per cent to more than Bt2.8 billion this year.