The Hindu Business Line : LG Elec focuses more on premium products

Bangalore May 31 Consumer electronics giant LG Electronics has set the ball rolling for a brand new marketing initiative in India which includes focussing more on the premium products as well as plans to set up another plant in the South.

LG also plans to increase its market share by 5 per cent from 26 per cent - 28 per cent it currently has by 2010.

"We will continue to sell low-end products but the focus will be more on premium products," the LG Electronics India Managing Director, Mr Moon B Shin, told Business Line.

He said once the existing plant runs to its full capacity, the company could look at setting up another plant either in Hyderabad or Chennai.

Hence, it has decided to focus more on its human resources and set up an assessment centre which will try to nurture the employees' capabilities as well as give them enough opportunities to grow in the company.

"We have put together a key performance index and we will evaluate our employees' capabilities on a continuous basis," Mr Moon said. "We have to nurture our people and evolve each individual's capabilities," he said.

He said one of the key areas which the company will be focusing on will be after sales service. "We need to strengthen our after sales service so that customers views it as one of our strong points," Mr Moon said.

Mr Moon said LG wants to launch products which are aspirational and wants to move into a category where it is viewed as a company which has `me only' products. He said the company would strive towards improving its relationships and also strengthen its ties with vendors as well as trade partners.

LG has so far invested around Rs 1,100 crore into its Indian venture. Its revenues for 2006-07 were Rs 8,300 crore and by 2010 expects to have revenues of around $4 billion.

"To grow into a $4-billion company, we need to grow at 24 per cent every year," he said.

Mr Moon said the company's earnings were 8 per cent of the total revenues and it wants to increase it to 17 per cent by 2010.

Mobile phone

With regard to the mobile phone segment, Mr Moon said LG wants to launch products which are less than $100 per set.

"Unless we penetrate the GSM market with low priced hand sets, we will not be able to make a mark," he said. LG leads the CDMA hand set market with a share of 60 per cent.

More Stories on : Outlook | Consumer Electronics

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page