Tanvi Shukla

Kuala Lumpur: Challenging its global rival Samsung, on the back of new features and styling, LG officials announced that it intends to become the number one player in the LCD (liquid crystal display) and plasma segments in India by 2009.

Amitabh Tiwari, business head, electronics and appliances, LG Electronics India Pvt Ltd said the new ‘Scarlet’ series will challenge “all our competitors in terms of feature and style”.

Tiwari claims that in terms of features, the brand would beat competitors by a ratio of 10:1.

“With this and other models being launched, we should be number one very soon,” he said.

Just how soon is the Korean major thinking? “If Scarlet hits off, we should achieve our target by this Diwali itself,” said Tiwari.

Currently, LG has a 22% market share in the LCD segment (fellow chaebol Samsung is on top with 40%) and leads with 45% market share in the plasma segment.

With Scarlet, LG is targeting a market share of 30% by end of calendar year 2008.

The battle could get interesting since Samsung India launched its new range of LCD and high definition televisions just a fortnight ago.

Samsung, sources said, is aiming to widen its LCD lead to 45%.

The total LCD and plasma segment, also known as ‘flat panel display’ segment, saw business of 4 lakh units in 2007.

This is expected to double in the current year.

LG unveiled its groundbreaking 1.8-inch thick Scarlet LCD television series for India on Saturday, along with other new models in LCD as well as plasma categories.

Japanese rival Sharp’s 34 mm version is the sleekest television in the business.

Scarlet was launched last month in the US and Europe in the price range of Rs 23,000 and Rs 4 lakh.

While this would drive the growth more in the higher segment, other models such as LG 30 series are expected to drive the growth in the mass segment.

The array of new products, be it in mobile handsets, LCD, washing machines, reflects the Korean consumer durables company’s new global initiative to re-launch as an aspirational and premium brand. It is in the process of doing so across segments and major investments are flowing in for the same.

The same strategy will be followed in India.

V Ramachandran, director-marketing and sales, LG Electronics India, said the company willl be investing Rs 380 crore in 2008 for marketing and promotions and Rs 120 crore in developing moulds and platforms for product development.

LG posted a turnover of Rs 9,500 crore turnover in 2007.

A slew of new durables

LG Electronics is also launched washing machines in the premium segment with the steam-wash model being brought in for the first time. Officials announced that they are targeting a market share of 32% this year from the current 26%.

The company is targeting the premium segment as well as the style-seeking segment with its new machines. The company is expecting to clock a turnover of Rs 830crore from this segment this year, translating into a compounded annual growth rate of 23%.

LG also intends to introduce air purifiers in 12-18 months.

“We believe there is a great opportunity in the air cleansing product category considering the increase in pollution and dust levels, especially in the larger metros. There is a significant consumer need and we are determining the feasibility,” said V Ramachandran, director-marketing and sales, LG Electronics India.

The company also plans to introduce wine cellars, to leverage the rising trend among Indians to drink wine The writer is in Kuala Lumpur at the invitation of LG

Source : DNA