LG realigns distribution network for IT products

MUMBAI: To enhance its market share and move closer to the consumer, LG

Electronics will focus on strengthening regional distributors. Its National

distributors also will virtually act as regional distributors now. The new

distribution strategy was announced in Mumbai.

With the revamping exercise going on, the company is also focussing on other

segments that include mobile and CDMA market. The company has targeted an annual

turnover of Rs 500 crore from its IT peripheral market. The company will enhance

its market share in this segment to more than 30 percent from the current 18

percent and aims to get a leadership position in the PC monitors segment by the

year 2002. Currently IT segment contributes around 10 percent and consumer

peripherals 90 percent of the total LG sales.

In line with its new strategy, LG is currently strengthening its presence

with the appointment of 120 regional distributors nationwide. A critical

component of LG's realigned distribution is the bimodal approach wherein

national distributors provide reach and regional players will provide depth.

K R Kim, Managing Director, LG Electronics, said, "Currently, we have

all the major players in re-distribution as our regional distributors and will

be roping in additional regional distributors so as to cater the entire

market."

The new distribution network will be backed by a rejuvenated and enhanced

service network for India. Currently LG provides post- sales service support

through its service centers located in eight metropolitan cities with 120

service centers across the country. The company will increase the number of

service centers to 150 by the year-end.