Saturday, December 22, 2007

LG Electronics India Ltd to invest Rs 1,100 crore in the next 3 years to consolidate its position in the premium segment of consumer durables

“We are targeting 30 per cent sales in the premium segment in 2008, up from 20-22 per cent currently, for which, we will invest heavily in marketing,” LGEIL head (sales and marketing), Mr Amit Gupta said.

The company is also targeting a revenue of Rs 16,000 crore by 2010 from the expected figure of Rs 9,500 crore this year, 81 per cent of which would come from domestic sales.
The Statesman

Consumer electronics and home appliances major LG Electronics India Ltd (LGEIL) plans to create an image of a mid-range to high-end brand focused on consumer benefits:

Amit Gupta, head of sales and marketing for LGEIL, said the company is in the process of creating flagship stores across the country to display its products and acquaint customers with the benefits of being an LG customer. Two such stores - in Noida and Hyderabad - have already been set up and more will come in course of time, he said.

Gupta said the number of brand shops as well as service centres will be increased and service will also be made available out of large multi-brand stores. Special attention will be provided to the newly-opened channel of modern retail - part of institutional sales for LG - as the company expects a greater contribution from this segment in the future.
Business Standard

LG Electronics India Pvt Ltd (LGEIL), the 100% subsidiary of LG group of Korea, shifts focus from home appliances to high-end GSM mobile phones, laptops and flat plasma display panels

Although LG would not pull out of the CDMA, it would switch over to the GSM as the mainstay of its mobile business, Shin said. While the demand for CDMA phones is growing at 1-1.5% per annum, it is 10% for the GSM ones.

LGEIL, with a product portfolio of consumer electronics, home appliances, IT products and mobile handsets, commands a market share of 26%, the highest among the electronics goods producing Companies, followed by Samsung's 17% and Whirlpool's 7%.

Shin said the company, after evolving the new marketing strategy, expected a 25-30% growth year-on-year compared with 17-18% it has witnessed this year.

This will bring about "a disproportionate growth enabling LGEIL to attain a top line of Rs 16,000- 20,000 crore by 2010 from Rs 9,500 crore at present," according to managing director Moon B Shin.
The Financial Express

LG's devises a unique process of subjecting their appliances and their various parts to extreme weather conditions to suit every corner of the India — from Kashmir to Kanyakumari

Established in 1997, LG Electronics India Pvt Ltd (LGEIL), a wholly owned subsidiary of LG Electronics, South Korea, which benchmarked the Toyota production system since last year, has invested in R&D for all-weather consumer appliances for the Indian market.

It is immersing remote controls and electronic panels into 2-inch layer of dust to acclimatise to Indian weather conditions.

With products from Noida and Pune 85 per cent indigenous, chambers have been created to subject refrigerators to 91 per cent humidity or temperatures up to 41.8 degrees Celsius to see what parts need to be changed to make it more viable in all parts of the country.

Washing machines are being kept in cages full of rats to see which parts of the appliance attract them most and thus make changes accordingly.

And packaged goods are thrown around from great heights to ensure after-sales delivery by unskilled porters doesn’t affect the machines.
The Telegraph

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