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The SOKOL Consumer Electronics Company sums up
its results for the year 2002


On January 22, 2003, the SOKOL Consumer Electronics Company made public its results for the year 2002.

According to Dmitry Timanov, General Director, "The principal result achieved by SOKOL in 2002 was the strengthening of the company's position. While in 2001, SOKOL TV sets had just appeared on the market and the company had enjoyed its first success, the year 2002 showed that this success was not incidental. SOKOL products met the modern quality and technological criteria and were in demand."

In 2002, the company sold 231,000 SOKOL TV sets, having increased its output and sales by 35% year-on-year. On the whole, 40% of the total output went to regional dealers and 60% - to those in Moscow. According to the company's sales department, in retail, the ratio was different. No more than 7% of the whole number of TV sets were sold by Moscow retailers. As had been expected, sales peaked in the 4th quarter when 40% of the output was sold, about as many sets as over the first 6 months of the year.

Also in 2002, the network of dealers and distributors continued to grow successfully. As of this time, SOKOL TV sets are sold in 82 cities and towns of Russia by 240 dealers. Since the beginning of the year 2002, the number of companies selling SOKOL TV sets has increased by 184%.

Also over the past year, the SOKOL model line doubled. In April, the first Acoustic stereo sets and Lux flat screen sets were sold. In December, the company began producing Optimum sets. Beginning May, TV sets of the Classic and Premium lines were produced in blue and white, in addition to black and silver housings. In September, the company announced that it was beginning making Lux TV sets with the diagonal size of the screen 74 cm, which were expected to appear on store shelves by the fall sales peak. However, this plan was frustrated because of the delayed supplies of components and the first 150 these sets left the assembly line only in the end of December. Instead of the 1,000 Lux sets with diagonal screen size 74 cm, as many 54 cm sets were produced.

SALES LEADERS


SOKOL model line Sales (%)
Classic 42
Premium 31
Acoustic 14
Lux 12
Optimum 1
Diagonal screen size (cm) Sales (%)
54 39
51 42
37 19


The beginning of the production of SOKOL DVD players, planned for October 2002, had to be delayed until February 2003. The delay was due to the demand, on the part of the company's design bureau, that software for the new devices be perfected. The necessity of this became clear during testing. The work on the software will be completed on February 10, after which the production of the players will begin. The company makes plans to output 50,000 SOKOL DVD players in the year 2003.

In 2002, the company's design bureau introduced a number of improvements and new features in the existing models. Beginning December 2002, the UOC single-crystal digital-bus-controlled video processor used for primary signal processing is installed in SOKOL TV sets. Previously, its job was done by a microchip system, which was more expensive while not quite as reliable and not quite as easily adjusted. The single-crystal video processor makes TV sets more reliable while improving the image. The newly developed model line of TV sets features stereo and pseudo-stereo sound working through a system of acoustic ducts, more powerful speakers (the Acoustic line), and new software for the Optimum model line with a new built-in set of recreational and educational games.

Over the year 2002, the company's developers worked on SECAM (the standard used in Russia and elsewhere), PAL, and NTSC signal processing assuring to the maximum a distortion and error-free image and adjusting the sets for optimal work under the conditions existing in Russia. This was how the SECAM Precision circuitry technology was created. It made for a higher sensitivity of signal reception and the passing of the signal through the video processor without transformations and, therefore, distortions. The system, though specifically created to support the SECAM standard, also supports other standards, assuring high image quality while receiving PAL and NTSC signals. Beginning February 1, 2003, only this technology will be used in SOKOL TV sets.

Also over the year 2002, the company continued its additional quality control campaign. The statistics concerning the complaints of the customers who brought various models of TV sets to service centres convincingly showed that while 3% to 5% of all TV sets ended up in repairs, for SOKOL TV sets this figure did not go over 1.5%. The introduction of new technologies is expected to bring it further down to 1%. Over the year 2002, special attention was paid to after-sale servicing. Beginning January 2002, the creation of a network of service centres began. As of January 1, 2003, there was 129 such centres.

In the year 2002, the company received a number of awards for its work in various areas. It received diploma "For the Glory of the Motherland" for its contribution into the restoration of the industrial potential of Russia. It was awarded a bronze medal during the Brand of the Year/EFFIE-2002 competition for the successful development and implementation of its marketing and advertising strategy. A "We Recommend" diploma was awarded by the Audio Salon magazine for the 54TC6100 TV model and the same diplomas - after the 51TC6153, 54TC6151, 54TC6100, and 37TC6153 models had been tested at the laboratory of the Consumer. Audio and Video magazine. The participants of the poll conducted by the Rambler search system voted Dmitry Timanov, General Director of the SOKOL Consumer Electronics Company the Man of the Year in the "Technology" category. In 2002, the SOKOL Consumer Electronics Company became a member of the Association of Business Companies and Producers working in the field of household electric appliances and computers (RATEC) of the Russian Union of Entrepreneurs and Industrialists. It is active resolving the urgent problems of its branch of industry.

SOKOL TV sets account for 15.4% of the market of sets produced in Russia.

Russian TV sets in the year 2002.



In 2002, 5 million various TV sets were on Russia's market.

The market of Russian-made TV sets in the year 2002.



Over the year 2002, due to the pricing policies of various companies, competition in the segment of inexpensive TV sets (under $250), and the dumping policies of the authorities of Belarus, prices for sets in this class dropped by 20%. On the one hand, this allowed increasing the capacity of the market because TV sets became more affordable for lower income consumers, while, on the other hand, significantly decreasing the profitability of manufacturing.

According to forecasts, in the year 2003, the capacity of the market of TV sets will reach 6 million, while no further decrease in the prices of Russian-made TV sets is expected. The SOKOL Consumer Electronics Company plans to produce 287,000 sets over this year while significantly expanding model lines and the variety of products.

Copyright Сокол, 2003 г.
sokol@sokol-tv.ru