New Delhi: A wholly-owned subsidiary of LG Electronics, South Korea, LG Electronics India Pvt. Ltd is targeting more sales of GSM phones, personal computers and flat panel displays.
The Korean company also plans to enter new segments such as built-in kitchens, wine cellars and air purifiers.
GSM phones, computers and flat panels contribute around 23% to the company’s total turnover.
“We our expanding our product line in these categories. These are the fastest growing segments and next year, we expect these segments to contribute around 33%-35% to our total turnover,” said V. Ramachandran, LG’s India director for sales and marketing.
LG expects to close 2007 with around Rs9,500 crore in sales from India. In the flat panel display segment, Samsung India Electronics Pvt. Ltd, another Korean company, is the leader with a 39% market share, followed by LG at 22%. “We wish to be the market leader in this segment next year,” said Ramachandran.
According to the company, in the GSM, an industry standard, phones segment, LG’s marketshare is 2%, while rivals such as Nokia, Samsung and Motorola enjoy 38%, 14.5% and 13% share, respectively.
“We are investing significantly in developing new handsets and in expanding our distribution network. Our product line-up for 2008 will be much stronger,” says Ramachandran.
In computers, LG’s focus will primarily be on the laptops, a category in which its current market share in India is only around 4%.
“About three weeks ago, we launched a laptop, called R200, which has an LCD screen on its top. We will soon be launching another model, called Desknote, which is a desktop computer that has a certain degree of portability,” said Ramachandran.
The firm plans to make significant investments in categories such as built-in kitchens, wine cellars and air purifiers.
LG is also relying less on prices to gain share.
This strategy was first evident during the recent festive season when, for the first time, the company did not offer any discounts on its products. Instead, it tried to shift consumer focus on the quality of its products.
LG says its new product launches and renewed consumer focus will be supported by an aggressive marketing campaign. The company claims to have spent around Rs350 crore on its marketing and advertising in 2007. “We plan to boost our (spending) by around 15%-20% next year,” said Ramachandran.