Samsung Losing Its Name and Integrity

By John Honovich, Published Mar 04, 2016, 12:00am EST (Info+)

Samsung's video surveillance division told everyone that nothing was going to change. They were wrong, if not lying.

They are losing the Samsung name and, in the process, their integrity.

Samsung False Assurances

*********** **** *** ********* ****** ***, *** ****, ***** US **, ****** *** ********** ** this*********:

“******* ******* **** ******** ** ******* product ***** *** ******* ********. **** is * *** *********** ***** **** Hanwha *** *******, ** *******’* ****** ** ***** *** ** *** ******** **** it,” **** ****. “**** ** ********* an******** ******** ***** ***********." (******** *****)

***, ******* ******* **** ** ****** exist. ****** **** ****, **** ********* ***** **** *** a **** ** ******* **** ******* to ******, *** ****** * '***** transaction'.

**** ****, ** **** ****, ******** that ** *** **** **** * 'stock ***********' *** **** **** **** becoming **** ** ****** *** **** the******* ********* **** *** ***** **** in *** ******** *** ******:

"[*** ****** ****] **** ** *********** *** ** ** *****, ******** companies **** ****** ******, ***** ***** *** (******* ******* America), *** (******) *** *** (******** Samsung *******, *****) **** **** ***** current ********* ********** ********* ******* **** and *****." (******** *****)

***, ****** *** ******** **** **** are ****** *** ******* '********* **********' around *** *****.

**** **** ******* **** **** * months ***, ******** **:

"****** ******* *** ************ *** ** the ******* ***** ****** **** ***********, it ** *** ******** ** **** the ***** **** *** ***** ** come."

********* ***.

Name **** - ***** ******* ***

*** ******* **** ** *** ****. Samsung ******* **** ** ****** *******, i.e., ** *** **, ** **** be ****** ******* ******* *** *** Samsung ***** ** ******** **** ** phased *** ** **** *********** ****.

** ******, ** ** **** ****** has ******* *****, **** ***** ******** **** ******************* ********* **:

*** **** ****** ******* ******** ******* has **** ******** **** ** ******:

Competitive ****** ***********

** **** *******, ******* ******* ******* are ********* ***** ******* ************* (*.*., see:******* ******* *** ****** ********,******* ******* **** ******* ******). *******, ******* ******* *** ***** integrator ******* (******** ****** ************* ****). *** ******* **** **** *** main ****** *** ******** ******* ******* was * ***** ****, ******** ******* alternative ** **** (***:*** ************* ******* *** ****** ****).

******* *** ******* ******* ****, ****** Techwin **** ****** **** **** ********* or, *****, *****, **** ******** ******* and ******* *********** ** *** ********* affected. *** *******, ****** **** *** have *** ******* *** ************** ** Axis' **** *** *** ****** *** to *** ******** ** ********, ***. to **** **** **. *** ******* brand *** **** *** *** ************** between *** ******* *** **** ************* and *******.

Bad ******** ******

******* ** *** ** *** **** well-known ****** ** *** *****. ******'* brand ** ********* *** ** *** West.

** *** ******** ***-**** ************:

"** * *** ** ** ****, "We *** ***** ** ** **** Samsung." * **** **** ** *********, issues ** **** ****. ** * tell *** "** *** ***** ** go **** ****** *******." * **** have * ***** ** ** ***** before * *** **** ******* ********.

*** ******* ***, *** ***** ***** on **** *** ** ***** **** Samsung *** ***** **** ****** *** Techwin ** ***** ******* *****. * think **** **** **** ***** **** recognition **** ******** **** ** *** discuss."

*****, ***** ******* **** **** * big ***** ***** ******** ** ***** and ** *******, **** **** ****** people ******?

****** **** ********** **** ** *** same - ******, ********, ***. ******** today **** ** ****. *** ** 16 ******, **** **** **** ****** this *** **** * '***** ***********' to *** ****** ***** ******* **** and ********. **** ******* **** *** can ****** ** *******?

Comments (39)

As a specifier, I'm having second thoughts about including Samsung on my current specifications. They have had good success on previous projects and clients like their performance. Now... I can't help but feel nervous about recommending them.

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Cook also made this comment:

“As we look to the future, it will be our decision going forward whether or not we keep the Samsung brand on our products or we decide to change it to something else.”

What alternative branding could they possibly go with that would be better than "Samsung" at this point? This is almost like saying "I might keep my country estate, or I might decide to live in my VW Microbus."

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What's the source?

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Hanwha called us. They had a separate call with trade magazine editors, etc.

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Did they give any more color about their loss of integrity? ;)

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I believe they disagree, though I too would like to see them justify their previous public proclamations with today's statements.

In particular, Samsung's sales team, under Cook's direction, went out and told numerous dealers the same message that deal had no impact, just a stock transaction, etc.

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So we are going to be a HTEP partner instead of a STEP partner now.....

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SamsungSecurity.com is now gone, replaced by Security.HanwhaTechwin.com This is the message displayed as one is redirected:

The US site, Samsung-Security.com (same as above, with a hypen) is still branded Samsung, though we suspect this too will be changed at or on the April 1st timeline they announced.

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I like the broken english..."Samsung Techwin become a new family..."

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from a western perspective its like this:

customer:"so what kinda cameras are you putting in?'

installer/sales:"Samsung"

customer thinks about where they have heard Samsung, tvs, smartphones, tablets. oh yeah the really nice non-I phone stuff.

customer:" oh those japanese make really great electronics sounds good now how hard is it to use...."

(yes i know they are S.korean)

hanwha on the other hand

customer:"what kinda cameras are you putting in?"

installer:" hanwha"

customer thinks and remembers all the china off brands at the discount stores/walmart that are really cheap and break/dont work half the time.

customer:" I dont know what those are is that like a china knockoff brand or?"

bottom line most americans/ westerners dont even know samsung is korean, but they know Samsung makes really great stuff. they built and image and trust with their stuff so it can sell better. Hanwha? honestly they could take the camera stuff and make it first class and hanwha be the new AXIS form the 2000's or pelco of the 90's, but right now they are doing everything but trying to prove that they want to make it with cameras.

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Sam sung.... or should it be Sam sang?

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Sam sung.... or should it be Sam sang?

Neil Diamond prefers the former

Sam Sung Blues, Everybody knows them...

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John,

I don't understand similar discussions in IPVM in regular intervals. Samsung/Hanwha is misleading or we are having such discussion to mislead the market?

Sorry, Initially I was with a good impression by viewing such discussions about Samsung security products or Hanwha security products, whatever , but slowly I feel these similar discussions at regular intervals like confusing IPVM users or security product market.

I would rather like IPVM to bring good discussions about different vendors, customers real problems with different manufacturer's products, where market will get benefit and manufacture's will bring good changes in their line-up based upon the issues found for customers benefit.

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Dear undisclosed Samsung Hanwha employee,

The reason we are having "similar discussions in IPVM in regular intervals" is that Samsung Hanwha's position continue to fall apart. They said it was just a stock transaction, they said they were keeping the Samsung company name in America and Europe, etc. And each time, these things are revealed to be untrue, we are calling it out.

I genuinely sympathize with you. Losing the Samsung corporate name is a huge blow. I can understand why your Korean co-workers publicly and repeatedly protested against the sell off.

I agree with you that there is going to be confusion in the market, but that confusion is coming from your company and their continuing tearing down of the old powerful Samsung identity.

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Every time I read remarks/discussions like this, including the subsequent discussion remarks by contributors, I am reminded of the following:

As to what Tyco has said versus what we have done, it has been 21 months since this acquisition. Certainly, all of you have had to change your strategies in the past 21 months, to meet changing business environments. -John Becker, Tyco Security Products - Video Portfolio

Yes the context is certainly different, but when you pay this kind of money you own the privilege of calling the tune, regardless of how misguided we all might think the decision is. Hanwha should get out in front and be making these remarks, and they should be forthright and honest, or just do what they will and make no comment what-so-ever; the later is also a bad idea.

My own Rep asked me recently why I have been so hesitant to embrace further dealings with Samsung. Reps have no voice in this, and they have to try and put Humpty Dumpty back together again daily, but an experienced observer could see this coming from a mile away.

The Cook interview in Securityinfowatch was absolutely a terrible decision. It makes him look like the Chet Wallaby of CCTV.

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We are the dealers for the Samsung camera , now as the name changes it will be difficult for us to explain people and get their trust back as it was with samsung.

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Here is more evidence of Samsung's contrary claims. Right after the acquisition, Security Products 'reported':

"[Tom Cook is] Adamant that this is a stock transition; not an acquisition."

Then Security Products congratulated itself on passing off this fallacy:

"(Sometimes it’s better to sit back and listen; I think you learn more.)"

But most of the time it is better to do research, find things out and understand how business works.

Either way, Samsung Hanwha Techwin has a huge problem to face now but they have made it worse with the approach they have taken.

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I would like to nominate T.C. for a Cortes award for his statements.

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Yes John, you were "schooled" in proper reporting by that magazine. You are so lucky it turned out in your favor that you did research instead of taking claims at face value ;)

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I get lucky often it seems...

Another Security Products greatest hit regarding the Milestone IPO lie: Ralph Jensen Defends Lots of Gifts From Manufacturers

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Here's another tact: "It's ok, because we were never really Samsung to begin with!"

"Samsung Techwin, going back, was a separate public company doing $2.5 billion (in annual revenue). It had its’ own R&D, manufacturing and sales force. Even though we were under Samsung Holdings, Samsung Corporation, we didn’t get our optics from Samsung mobile company or Samsung consumer company, we were and are an independent company,” said Cook. “When Hanwha Group acquired us, all of that R&D, manufacturing and everything else came over. Samsung Techwin, now Hanwha Techwin, has 1,950 employees right now. This is our organization. We don’t share this with Samsung at all — we never did. I think people saw the Samsung brand and said, ‘Oh, they make a camera from the cellphone division and they share technology and all of that.’ We’ve never done that at all.” Tom Cook

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"we were and are an independent company"

This is also false.

Samsung controls numerous companies that they call 'affiliates', such as Techwin, until they sold it. This is the current 2016 Samsung affiliate listings, including Electronics, Engineering, Investments, but not Techwin since they sold it. Simply look at the Nov 2014 Samsung affiliate listings and Techwin is right there as one of the Samsung affiliates.

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Another irony is that he denies any technology collaboration or transfer with Samsung Electronics and in particular their smart phone division, yet most of the cachet of the name comes from that exact unfounded association.

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On this matter, from the day one, I've been posting that the usage of Samsung brandname by Hanwha would be discontinued in a couple of years after the "acquisition" by Hanwha. It was just like UTC now reviving/using Interlogix name after acquiring GE's surveillance business. It is now happening sooner than I thought.

I also want to remind people that both of surveillance business that Samsung Electronics and Samsung Techwin respectively had were consolidated into Techwin 5 or 6 years ago in an effort to streamlining Samsung Group's business interests. The surveillance business made up a tiny portion of Samsung's revenue and was never meant to be strategically important to Samsung.

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On this matter, from the day one, I've been posting that the usage of Samsung brandname by Hanwha would be discontinued...

Roger and you... :)

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I would like more of an opinion of whether the cameras will be the same tomorrow with Hanwha as they were yesterday with Samsung Techwin. Today they are good balance between cost and quality.

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Vasiles,

It is a good question but hard to tell.

Hanwha has clearly established that it will say whatever sounds best about its future even if it turns out to be wrong / false months later. So Hanwha says that cameras will continue development as before but hard to tell if that will be the case.

One interesting thing is that surveillance cameras are a bit player, financially speaking, for Hanwha's overall strategy. As Hanwha announced itself, their core strength with Techwin is becoming Korea's Defense Industry Leader, including artillery, tanks, etc. So will Hanwha see commercial HD cameras as part of that effort or outside it?

The other critical point is what do all of these conglomerates (Samsung, Bosch, Sony, Panasonic, Tyco etc.) do given the Chinese continuous price cuts? If this continues, it is easy to see some of them either exiting or reducing investment given an inability to generate suitable profits.

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Hanwha has clearly established that it will say whatever sounds best about its future even if it turns out to be wrong / false months later. So Hanwha says that cameras will continue development as before but hard to tell if that will be the case.

Then again, Hanwha may have allowed and even approved of Cook's statements, but I doubt that "Hanwha" created them and told Cook to deliver them. One would imagine that the Techwin sales forces outside of Korea were the ones pushing for the best interpretation of the deal and use of the brand.

Therefore if indeed Cook made these statements of his own volition, and since Cook et al were the previous Samsung management, I see no reason that for better or worse, Samsung will be run any differently than it was before.

Like you say surveillance is a bit part for Hanwha, and probably was slightly insulted by the desperate clinging of Techwin employees, even just to seven empty letters.

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They would have been better off just creating an "independent" subsidiary called simply "Techwin" and leave off the Hanwha name. (Just disclose somewhere in the fine print "a division of Hanwha"). But how likely could they have done that? Or was it a matter of misplaced pride for Hanwha to want to put their name so prominently on the product?

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"The Samsung name does carry weight," Cook said. "We negotiated that it's up to us [when to stop using the Samsung name]. Eventually we want to make it our own brand." Cook said they want to make sure they don't hurt the company or slow down their momentum, and they will constantly reevaluate to see when it is most beneficial to drop the Samsung name. "There are no legal ramifications or contracts that have to be changed. We are keeping the name by choice."

Offsite Meeting - 12/31/2016

T.C.: What do you think guys, time to drop it?

Guys: Nah.

T.C.: Oh, come on now, we'll make our own brand! You guys pick!

Guy: Can we be Apple?

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We work with Sams..... errr... Techw... errr.... Hanwha. It was pretty obvious from the start that there was a specified time period, after the Samsung divestiture, they'd be allowed to use the brand/name.

The strategy was to try and build the product & SI relationships during that transition period to the point that the "name on the box" wouldn't matter.

From the tone of the comments here, it does not appear the strategy was successful.

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Hanwha with details on the last part of Samsung eradication:

"Cook said that the products will eventually be rebranded.... The timing is 'evaluated quarterly and monthly, but there is no rush.... Cook mused that rebranding could occur when Hanwha Techwin hits a milestone such as when Samsung “is no longer fifth [largest video surveillance provider according to IHS] and is second or third.”

So Hanwha is going to finish the rebranding when they are bigger than Axis? (Hik/Dahua/Axis - 1/2/3 IHS) That is highly unlikely but an amusingly optimistic statement.

Such a weird description, especially the evaluating it monthly. In what universe will Hanwha or any brand that Hanwha can get be better than Samsung?

I suspect, that like the corporate name change, the final brand eradication is being driven from above, independent of whether Hanwha beats Axis.

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So Hanwha is going to finish the rebranding when they are bigger than Axis?

And so if they tank they are going to hold on to the brand for dear life?

Samsung is just gonna love that!

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Goodbye Samsung. The Puerto Rico partner event is over and Hanwha is in charge:

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Some of the partners are having a harder time with the name change:

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Even over at the Global site for Hanwha Techwin they're still stamping them out with the unadorned "SAMSUNG" label:

Makes it look like "Samsung by Hanwha".  

Though somebody on ebay knew back in August what the future held:

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And up top on the specification sheet, they have no company brand, neither Hanwha, Samsung nor Techwin.

Instead, they market it as WiseNet III:

These guys need to pick a brand and go with it. Minimally, switching back and forth between Hanwha, Samsung, Techwin and WiseNet causes confusion, if not concerns about gamesmanship.

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First one to take and post a picture of an actual Hanwha camera branded as such wins!

Itl be like Willy Wonka and the Golden Tickets without the calories.

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