/dqweek/media/agency_attachments/JNb31gQnqJvAm0jqPxaV.png)
Follow Us
The whole IT
industry is in a state of shock with the recent announcement made by
PC maker, HP to either sell off or spin off their PC business and
kill its tablets and smartphone category. Contrary to the belief of
the situation, another consumer durable major
has re-entered into
notebook space, with the introduction of 13 SKUs. The company aims to
become one of the top 5 players in the notebook segment by 2014.
In the past,
LG had been struggling hard to position its PC business worldwide.
The company exited the notebook segment around two-and-a-half years
ago. The decision behind making a re-entry is that currently Indian
notebook market is much more matured and burgeoning. By taking
corrective measures and setting the right directions towards PC
business, the company has made a comeback.
In addition
to laptops, LG's IT business consists of LCDs, LEDs, network and
graphic monitors having market share 24%, optical storage devices
with 60% market share and hard disk drives.
Speaking on
the sidelines of the launch of the notebook, Soon Kwon, president and
MD, South West Asia, LG Electronics said, “Earlier we had seen a
partial success in the notebook space. We discontinued our PC
business because of our inability to understand the customers' needs.
Therefore, we took some time to understand the consumers' need better
and worked towards the same. Having said that, notebook business is a
key part of our global portfolio.
are
not looking at any market share this year, however in the
next year, we expect the notebook category to contribute 12 -14% in
IT business by 2012. Our IT division is eying a 15% growth in revenue
terms and has targeted Rs 1,000 crore revenue by 2012. Nevertheless,
in the current year, we hope to garner Rs 860 crore.”
Kwon further
added, “At LG, we have decided to grow very big in 3D technology
space including TV or 3D laptops. The new line of notebooks is
targeting at the premium customers, who are more interested in
technology, style and design. We now plan to come out with a
affordable range of notebooks in near future.”
When asked
about the strategy to cross Rs 1000 crore barrier, Kwon said, “Our
PC monitor and
business already has a dominant market share and will continue to
grow. We are banking on our notebook business and aiming to capture
20% market share in the next 5 years. In addition to this, we are
planning to foray into printing domain with the launch of our inkjet
and laser printers in the next 2 months. Henceforth, notebook and
printers will be the growth engine of our IT verticals.”
The
go-to-market strategy for the notebooks business will remain through
the traditional IT channel. Sanjoy Bhattacharya,
group
marketing head-IT, LG Electronics India said, “We will
continue to drive our notebook business with our 10 year old regional
distribution model. We have identified 70 distributors for the
notebook distribution. In addition to this, we are also taking retail
route in a big way. Our LG brand shop will continue to contribute in
the business. We have also signed up with 3 large format retail
showrooms. From October, 2011 our notebooks will be available to the
end-customers. Moreover, in 2011, we are looking at the shipment of
20,000 units followed by 80,000 units in 2012.”