LG in India to Focus on Smaller AC Markets
Feb 7, 2003
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LG Electronics in India will focus aggressively on smaller markets in to achieve its sales targets in the air-conditioner segment this year. It expects these markets to contribute at least 20-25 percent to the overall sales in the category.

In the air-conditioner category, the seven top cities account for almost 63 percent of the market. However, with increasing clutter and competition in these markets, demand in the B and C class towns are expected to offer a better rate of growth. "There is a latent demand in these areas that we will tap aggressively this year through our existing dealers," says LG Electronics head (AC division) Salil Kapoor.

It has defined smaller markets as class B and C towns in Bihar, UP, MP and the interiors of Andhra Pradesh and Karnataka.

While the AC market is projected to see a growth of 15 to 20 per cent this year, LG is targeting a growth of 50 percent. "Last year also we achieved a 100 percent growth against an industry growth of 20 percent," says Mr Kapoor. Of the projected three lakh units, 50,000 to 60,000 units should come from the smaller markets.

In the premium segment, the company is launching a number of new models under the Whisen sub-brand. "For better uniform cooling we are also introducing top throw and three-way throw models, where the vents are on both sides and the top or bottom," he says.

The three-way throw window category is popular in the US and Europe. In India currently, the side throw models are the most popular in window ACs, where the vents are on one side. However, if the unit is not located in the centre of the room, it results in hot air pockets in parts of the room. (Financial Express)

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