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LG expands upcountry retail presence

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DQW Bureau
New Update





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Benchmarking note­-books, media center PCs and desktop PCs

as its growth engines for the year 2006, LG Electronics is planning major

expansion drive in retail sector. The company is planning to set up retail shops

in B, C and D-class towns to foster its IT products among the masses.

LG Electronics IT division logged a revenue turn over of Rs

900 crore this year and the company is hoping to meet its projected target of Rs

1,200 crore this fiscal. Incidentally, LG My PC, which the company launched in

an endeavor to metamorphose from a PC building blocks vendor to complete desktop

solution company, has not met the customer approval. Now, it has reaffirmed its

stand of a renewed focus on desktop and cleared the air of rumors that LG is not

very serious on its PC business.

Providing

more insight about the LG IT division road­map for FY 2006-2007 R Manikandan,

GM, LG Electronics said, “2006 will witness ample retailing initiatives taking

place all across the country. Primarily, it will be B and C-class towns that

will receive the lion's share of retail funds.”

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He explained that when the PC was making its debut in the

home segment earlier, people used to make purchasing decision by going through

the catalogues and word-of-mouth publicity. But now they want to get first-hand

experience of the product they are going to acquire. “This is why we have

taken a con­scious decision to take further the Cyber Shop­pe concept to more

upcountry towns.”

Currently LG has 81 Cyber Shoppe retail outlets, largely

located in the metros. It is planning to increase this to 150 by mid-2006.

Manikandan informed that 50 percent of LG's revenue is expected to be

generated through retailing.

Since the company is making much noise over retail,

Manikandan gave a piece of advise for partners as well. “If channel partners

want to make above the board margins and differen­tiate themselves from the

competition, the best way is to go retail. It is high time that they latch on

retailing wagon if they want to continue business in the same stream,” he

opined.

CyberMedia News New Delhi, March 15

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