LG Electronics India Pvt Ltd (LGEIL) is planning to open a chain of exclusive stores for its IT products. "Indian customers prefer to touch and feel the products before buying it. These exclusive outlets--LG Cyber Shops will give our customers an opportunity to experience the product," said R. Manikandan, general manager of sales and marketing IT products, LGEIL. "Currently 38 such outlets are operational across India. We are going to increase it to 100 by this year-end."
PCs, he said, are considered to be a young product mainly targeting youth. And advertising plays an important role in the marketing strategy. "We have already roped in celebrities in various fields for our home appliances segment. This makes it easy for us to use them for the promotion of IT products," he pointed out.
He said during early 2004 there was a shift towards branded PCs as more and more customers began to prefer branded ones to assembled PCs. "In 2005, the branded consumer PC market in India is estimated to grow at 59 percent. This is due to the reduction in price gap and the nationwide service available through the retail centers along with aggressive marketing strategies," he said.
The commercial PC market, according to him, is two thirds of the total PC market. "In the first quarter of this financial year LG was able to garner 8 percent of the consumer desktop market recording a 22 percent sequential growth. With this, we could get the third position with HP and HCL ahead of us occupying the top two slots," he said.
LG's overall revenue in India this year is expected to be U.S. $2.04 billion in India of which 12 percent will come from personal computer business. "The share of PC business is increasing every year. The share was 10 percent in 2003," Mr. Manikandan averred.
While LG is expecting its PC shipments to grow 37 percent in unit term, it is expecting 60 percent growth in revenue terms. (Newindpress.com)
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