Chennai: LG Electronics, the Korean consumer electronics major, has plans to have 100 exclusive retail outlets in India to sell its computers and accessories. All the outlets will be franchisee-owned, confirming to the design specifications laid down by LG Electronics.
''We will support the franchisees in branding, décor and other aspects,'' says LG Electronics deputy general manager (sales and marketing - IT products) R Manikandan.
Manufacturing and selling monitors and optical storage devices (CD-ROM drive, CD Re-writers, DVD ROM, DVD RAM and Combo drives) for quite some time, LG Electronics entered the home personal computer segment in a small way with its PC brand priced at Rs 35,000.
''We wanted to have a nationwide sales and service network before expanding the PC business so that our consumer does not find any problem in after-sales service which would have resulted in earning a bad name. The exclusive retail outlets for IT products are being set up for this reason,'' says Manikandan.
LG Electronics is the market leader in optical storage devices with a market share of 51 per cent while in the monitor segment it enjoys a share of 28 per cent. Its IT products contribute around Rs 364 crore of the company's Rs 3,315-crore turnover. The company expects a turnover of Rs 500 crore this year from the IT peripheral business.
The company, in the meantime, has launched the 30-inch Flatron liquid crystal display (LCD) monitor - the world's largest. Priced at Rs 2.47 lakh, LG Electronics hopes to sell around 300 units during the first six months. ''This is a product for corporates and other institutions like stock exchanges where display monitors play an important role,'' says Manikandan.
Though a large-sized screen, it is thin enough to be hung on the wall. It also comes with an optional mounting rack and stand. The monitor can receive not only analogue and digital signals but also AV signals, making it possible to connect to DVD and video game players.