EFY Times  
Friday, October 09, 2015

Economic Slowdown Will Not Impact B2B Segments
Home >> Infotech >> Interviews
Economic Slowdown Will Not Impact B2B Segments  
At a time when the Indian economy is in some trouble, companies will move more towards automation, increasing the opportunities for business solutions.   
Rate this news:  (0 Votes)
Monday, June 18, 2012 At a time, when import costs have gone up and the rupee is in a dwindling mode, companies are looking at cutting costs and hiking prices across segments. Even the consumer electronics companies are seeing poor sales and are forced to hike prices across verticals to evade losses. In such a scenario, Hemendu Sinha, sales head, B2B LG Electronics India Ltd, says that the industry will see a good growth as organisations will try to increase efficiency through automation and reduce expenses by actually reducing the dependence on manpower. We speak to him to know how the industry is poised to grow and also about the business and distribution network of the LG B2B division.

LG, LG India, LG B2B, Hemendu Sinha, B2B solutions, B2B segment, security, CCtv camera, commercial display segment, projectors, distributors, channel partners, hospitality, LG B2B business, inflation, distribution strategy, good growth, B2B, expansion plans, marketing strategy, LG B2B portfolio

What is the range of products that are included in the B2B Solutions portfolio?

The B2B Solutions portfolio of LG comprises a range of commercial display and hospitality solutions. Commercial display portfolio is quite wide and big. It covers all kind of digital signage solutions and in addition to that we have the hospitality specific solutions. Primarily, we talk about four product line of solutions:-

1. The commercial display which covers the signage part of the solutions
2. The hospitality solution which is for hospitality segments like hotels
3. In security, we have the CCTV range of solutions
4. The projectors.

These are the four categories of solutions which we have under the B2B umbrella. In addition to this, we also have institutional sales of the legacy products like consumer electronics and white goods which are in the overall LG portfolio.

The year 2012 has not been good so far for the consumer electronics industry and companies have been hiking prices across segments. How is the market faring for B2B products in such a scenario?

All this speculation that we hear about is emanating from different sources primarily because of the recession and also as the purchasing capacity of people is going down because of inflation. In such a scenario, any business that looks to increase efficiency needs to trim down the expenses. The only way for doing so is to automate and reduce the dependency on manpower and increase the deployment of automation or machines. These kind of tough conditions offer better opportunities for B2B automation solutions. So, I foresee that most of the organisations will try to increase efficiency through automation and reduce expenses by actually reducing the dependence on manpower.

I don't foresee the business going down in this particular category of the industry. Even when we look at hospitality and talk about organisations cutting down travel expenses, they go for other kind of solutions which opens up lot of opportunities. I don't think the economy slowdown is going to impact B2B segments. Yes, it will affect the consumer definitely as inflation is rising and consumers have different priorities rather than spending on consumer electronics and white goods. B2B will definitely foresee a good growth.

What is the kind of growth rate that the market is expected to see this year?

It is difficult to estimate the entire B2B segment because B2B is not just one segment but consists of various verticals and various solutions segments. For instance, if you talk about security, it is poised to grow at 20 to 22 per cent compound annual growth rate (CAGR) which is quite healthy. Similarly, signage solutions will grow at 15 per cent. For hospitality, we are talking about 25,000 rooms getting added this year in five-star and five-star plus category hotels. Each segment will grow differently, so we don’t have a consolidated data to talk about the B2B industry as a whole. If I see a fair estimate, it will be around 10 to 15 per cent growth for the entire segment, but again it will be quite fragmented. I see a good growth and most of these segments are expected to grow at a fair pace.

What is the kind of market share that LG has when we talk about B2B solutions?

As I mentioned, it is difficult to get the data for B2B as such, as it consists of various segments and various verticals. In each segment, the data could be different. In hospitality, we will have different percentage, signage will have different and security will also have a different percentage. Overall, we are looking at around 20 per cent of the market share in the entire category.

How have you grown in this market since you entered the B2B domain?

LG was present in the B2B domain since a long time. It is just that last year we concentrated on our initiatives in B2B and created a different segment. We were actually doing business in a very fragmented way. Last year was the first year when we went into the market in a consolidated way as a B2B company. We have done quite well from then as initially the reference was zero. Now we are reporting force in every category of B2B today.

Can you give us an idea of the current revenues or profits of the B2B segment for LG?

As things were consolidated last year only and the datum is just set, so may be in 2013 we will be able to measure our performance vis-a-vis this year. It is difficult to quantify at this moment because we are more in consolidation, market addressal and expansion mode right now. We are not measuring our performance in terms of revenue this year as 2012 is the first year when we are in the market with full force and all elements in place. Next year, we will be able to measure our revenue performance and profitability and then come out with a figure in 2013.

Can you tell us more about your marketing and expansion plans?

Other than above the line (ATL) activities which keep happening across different segments, last year we started with a road show where we went to six cities and had a two-day affair in select places where we showcased our entire range. This is the first activity we focused on in the second half of 2011 and we want to carry it on this year as well. But this year, our footprint will be larger and we will be covering more cities. We will go to eight to 10 major cities of the country like Delhi, Chennai, Mumbai, Kolkata, Ahmedabad, Bengaluru, Pune, Hyderabad and a few more. We will have a trade show where we will showcase the entire range of products to our partners as well as to our end customers and meet them directly. This will be a very extensive activity covering the entire country.

We will begin this activity in July and try to complete it in a month's time. We will make our partners, end customers and also potential customers aware of the offerings in our portfolio through this activity.

What is the kind of marketing budget you have for such kind of activities?

We get the marketing budget from the entire LG spend. A separate amount is not ear-marked for the B2B division. We have hefty budgets for the entire LG organisation out of which we get a major share to spend on our activities. Since we are incubating within the organisation, these things don't matter much for us. We give our plans to the top management and get approval from them. We will have a fixed budget for marketing from 2013 when we will start counting our profits and our revenue performance.

Tell us more about your partners.

We have three kinds of partners – national distributors, regional distributors and at places we have city-based distributors, after that we have the system integrators and then the value added resellers. This a purely B2B channel. We have different levels of interactions with these people. We conduct trainings for them and keep doing a lot of small activities with these partners. Like we recently did in Jaipur, Bhubaneshwar and Ahmedabad, where we called the entire partner fraternity and actually trained them to enable them and equip them with the technology that we have to offer. This is the first level of interaction. In addition to it, our sales team goes to the end users and also shares with them what we have to offer. These are the two kinds of main activities that we do across the country.

What is the approx number of distributors that you have for the entire B2B segment?

For the commercial display segment, we have Neoteric Informatics as our national distributor (ND) at this moment and around 10 large system integrators. For the security range, we have 150 distributors and for projectors we have one ND and close to 30 city-based distributors. For hospitality, we have around eight to 10 system integrators and no distributors since in hospitality most of the products are imported directly by the customer. If I talk about the overall partner faculty, we have close to 200 people on board, which is a mix of system integrators, and city-based distributors, regional and national distributors.

So, for every product line, we have a different strategy. As far as NDs are concerned, we are not going to add any in recent future but yes, we will keep adding in other categories.

Do you function through retail as well?

Not retail. When we talk about B2B, it is through distributors and direct as well. Most of the projects we do are direct. So, it's either direct from LG or through our distributors.

However, when we talk about city-based projector distributors, they may be giving the products to some retail chains, but we don't go directly to any retail chain.

What is LG B2B's contribution to overall LG business?

It is not in double digits right now. We don’t contribute much towards the revenue or the overall turnover of LG as we initiated things last year only. As I said, we are not measuring ourselves in terms of revenue and profitability. Last year was an year of consolidation for us and in 2012 we are targeting around 10 per cent contribution to LG's business.

Upasana Rajpal, EFYTIMES News Network

Print Email Post Comment 
(Total Views: 5305)

Infotech News
Clicktable.com : Cloud Based Software For Restaurants To Streamline Front Desk Operations
FDI Policy to be simplified further
Hank Summy Joins LiquidHub As Partner, Vertical Markets Lead
Square Yards To Conduct India Wide Training For Real Estate Brokers And Agents
Amazon & Flipkart sale to take place on same dates
Most popular


Brightleaf Solutions Forges Alliance With Corridor Company To Streamline Contract Abstraction And Management
OnPage Announces The Introduction Of The Dynamic Scheduler Update To Its Critical Messaging Software System
Mitsubishi Electric Introduces EMIRAI 3 xDAS Assisted-Driving Concept Car
3M Announces New Leadership Appointment
Richardson Electronics Reports First Quarter Fiscal 2016 Results And Declares Quarterly Cash Dividend
Research And Markets: Aircraft Seat Actuation Systems Market - Global Industry Analysis 2015 - 2021
Renesas Enables Development Of High-Performance Linux And Android HMI Applications
Research And Markets: Global Bio-Polyamide Market 2015-2019
3M And Lotus Applied Technology Complete ALD Barrier Technology License Agreement
Sypris Announces Its Most Advanced Cyber Range At GovWare


Android 6.0 Marshmallow: 7 new features
Panasonic Upgrades Video Management Software Suites To Deliver A Full 4K End-To-End Solution
Flipkart gears up to make its BBDay's sale hassle-free
Asus joins the “Make in India” initiative
5 Reasons That Suggest Google Is Becoming New Microsoft
9 Motorola Phones That Will Get Taste Of Android 6.0
Arup Employs Highly Innovative Engineering Methodologies For Samsung's Device Solutions America Headquarters
5 things to keep in mind while buying second-hand phones
Intex plans to open fifth manufacturing unit
Top 5 New Features In OS X El Capitan
Must know: Top 5 tech skills for you
Praxis Media Private Limited Announces Winners Of The National Dental Achievers, 2015
Gmail Vs Outlook.com, Which One Is Better?
5 Things You Probably Didn't Know About Nexus 5X & 6P
Mindteck Chooses AuthShield Multifactor Authentication For Authentication Security
Lenovo launches Phab Plus phablet, priced at Rs 18,490


5 Things You Probably Didn't Know About Nexus 5X & 6P
Google's latest Nexus devices are manufactured by LG and Huawei....
Gmail Vs Outlook.com, Which One Is Better?
Gmail offers best features while, Outlook has most user-friendly and clean interface....
Top 5 New Features In OS X El Capitan
El Capitan is a upgrade worth having for Mac users....
9 Motorola Phones That Will Get Taste Of Android 6.0
Motorola is the first manufacturer to announce it’s plans for Marshmallow update....
5 Reasons That Suggest Google Is Becoming New Microsoft
In today's market, Google is under siege from all directions....
5 Ways Microsoft Office 2016 Can Make Your Life Easier
Microsoft Office 2016 is a comprehensive solution that is designed to make your work life easier....
5 Ways To Speed Up Your Mac
Sluggish computing experience is frustrating. Here are 5 ways to help you speed up your Macintosh computer....
5 Tips To Boost Your Home WiFi
You can get the most out of your home WiFi by using simple tricks....
5 Unique Features Of Microsoft Office 2016
Office 2016 brings tons of new features and apps to boost productivity of users....
Top 5 Heroes Of The Linux World
The world of open source is driven by key people who control it....
Top 5 Open Source Software Foundations
Open Source projects are supported and promoted by Open Source Software Foundations. ...
Top 6 Plugins And Extensions For Gmail
These Gmail extensions can boost your email productivity....
6 Hidden Design Features In Apple Products
Apple is known for paying keen attention to design aspects of Apple products. ...
5 Technologies That Tick Off Linus Torvalds
Linux creator is known for making harsh comments on technologies that don't appeal to him!...
Top 5 Open Source Storage Solutions
The right storage solution is crucial for business. Open source tools can minimize the investment cost....
  View All
Meet Pranjal Saxena, India's 21 Year Old Electronics Wizard
Milan Ondhia of EFYTimes was in a forthright conversation with the 21 year old Pranjal Saxena from New Delhi; an aspirant at the WorldSkills meet, in ...
“We Offer Managed Document Solutions To CIO And IT Decision Makers”: Canon
Manufacturing within the country will surely reduce the cost of our devices, but manufacturing can begin only if there is the desired eco-system and w...
“One Day The End User Can Open Up A Used Battery, And Use What’s Inside As Barbecue Sauce”
Of course that is not something currently possible, but what B&B Batteries does have are some secret recipes for their very specialised battery design...
We Wish To Procure All The LED Components Within India: Avni Energy
G. Gururaja, director, Avni Energy Solutions Pvt Ltd, shares his views about the expanding LED industry in the Indian market and the company's plans i...
We Have Registered 50 Per Cent Growth In The Last Two Years: Arihant Lighting
Apart from LEDs, Arihant is associated with the promotion of renewable energy in India and therefore, manufactures various energy saving products....
  View All
First Look: LG Optimus G
The phone sports a high-end display and comes powered by a powerful processor. ...
Create QR-Codes For Free
TEC-IT releases the freeware QR-Code Studio to provide a quick and convenient way of QR code creation for every application scenario....
DoT Secretary Shares Plans For Growth Of Telecom Sector
M.F. Farooqui has recently taken charge as secretary, Department of Telecom....
Hands-On: Sony Xperia Z
Xperia Z is Sony's first entrant model in the big-screen smartphone category. ...
Hands On: Videocon A30 Smartphone
Videocon, the consumer electronics company which is known for its refrigerators, washing machine and air-conditioner has unveiled its Android-based sm...
View All
IFA 2014
IFA 2014: LG Launches 34-Inches Curved Monitor
The company is yet to confirm price and availability of the device....
IFA 2014: Intel Launches First Core M Range Of Processors
This range of processors is tailor-made for 2-in-1 devices which include a tablet and a laptop....
MWC 2014: Tablet Lets People Feel Textures On Its Screen
Now feel what you see on your tablet, by way of ultrasonic waves....
MWC 2014: 4K Android Tablet Games To Kill Consoles, iPad
Tablet makers like Samsung want to beat the iPad by making 4K tabs. ...
MWC 2014: This Vodafone Backpack Helps Get Network In Disaster Situations
Two engineers of Vodafone New Zealand displayed the "mini" mobile network by Vodafone substructure in a backpack. ...
MWC 2014: Wilocity Chipset To Bring 'Lightening' Speed To Mobile Phones
Wilocity has developed a WiGig chipset for mobile phones that will bring lightning-fast wireless capability ...
MWC 2014: Samsung Introduces Octacore, Hexacore Chipsets
The Korean giant, Samsung unveiled two new octacore and hexacore chipsets at MWC 2014, in Barcelona. The company previously used Exynos 5 Octa 5410 ch...
View All
19th Consumer Electronic Imaging Fair To Be Held On ...

View All

home archives contact us advertise with us
Magazines Portals Directories Events News Verticals Educational Institute  
Electronics for You
Open Source for You
Electronics Bazaar
Electronics Annual Guide
EFY Awards
Linux & Open Source
Consumer Electronics
Science & Technology
EFY Techcenter

Educational Kits
© Copyright 2015 EFY Enterprises Pvt. Ltd.
All rights reserved. Reproduction in whole or in part in any form or medium without written permission is prohibited.
Usage of the content from the web site is subject to Terms and Conditions