Appliances and durables firms are finding alternative sources of revenue in business-to-business segments. With businesses such as retail, banking and education pumping investment in large size displays, signage and even smart boards, companies including LG, Samsung, and Panasonic have all entered the fray intensifying competition in the space.

Industry pegs the total size of the B2B integrated display market to be around Rs 2,500 crore and growing at 25 per cent annually. They note that the B2B segment despite being low volume is high in margin owing to the steep prices.

Also, the durables and appliances business has been growing at over 25 per cent since last two years. “Sustaining this kind of a growth is difficult in future keeping in mind the inflationary pressures, therefore companies are looking at alternative revenue channels. Going forward, many more companies will join the B2B bandwagon,” they observe.

LG Business Solutions

Durables maker LG Electronics India has carved out an integrated business-to-business vertical, LG Business Solutions, to cater to segments such as restaurants, education and retail, and banking space. LG said it is targeting revenues of Rs 1,000 crore by 2014 from this vertical alone. “We are targeting a turnover of Rs 1,000 crore and a market share of 25 per cent by the end of 2014 in this segment,” said Mr Soon Kwon, President, South West Asia Region & MD, LG.

LG said it will take both the direct selling and channel partner route to market these products. Mr Kwon said LG will be investing Rs 20 crore for developing the market for B2B products in India. The company is expecting 4-5 per cent of B2B market.

Earlier this year, rival Samsung, too, had expanded its B2B range to retail products such as digital signage and boardroom displays products, among others. Samsung is targeting sales of $100 million in 2011, over two-and-a-half fold jump from last year, from its information technology products in the B2B.

The company's total (B2B) sales in the IT and mobile division — such as printers, mobiles and displays — stood at $38 million (around Rs 173 crore) last year.

This year it is focusing on the education sector with an aim for 25 per cent to the total sales target to come from the segment.

“The thrust area is the education sector and we are targeting 25 per cent of the total sales to come from education sector this year,” Mr Ranjit Yadav, Samsung India Electronics Mobile and IT Country Head Ranjit Yadav, said.

Mr Toru Hasegawa - MD Corporate Planning and System Sales Division, Panasonic India, said, “We are heavily betting on it.”

System sales division

The company said the system sales division has been growing rapidly contributing 20 per cent to the total company turnover. “Panasonic SSD has been growing at 65 per cent annually,” he said adding the company said it recently inaugurated its experience centre in Mumbai which has been specially designed keeping in mind the different needs of different businesses and industries.

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