EFY Times  
Tuesday, September 16, 2014

 
GO
 
 

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: 4910)
 
Share

 
 
Infotech News
   
Celkon Introduces Millenium Ultra Q500 Android Smartphone!
How To Protect Your Gmail Account?
Cognizant To Acquire TriZetto, Creating A Fully-Integrated Healthcare Technology And Operations Leader
Proxmox VE 3.3 Release With Focus On Security
Major Differences between iPhone 6 and iPhone 6 Plus
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

Major Differences between iPhone 6 and iPhone 6 Plus
Epson Wins 2014 CTIA Hot For The Holidays Award For Pulsense PS-100 Band
Industry's First Haptic + Bluetooth Kit Enables Haptics To Go
Samsung Expands Award-Winning NX Camera Line Up With The Launch Of The New Flagship NX1 SMART Camera
Meet Bad News Barrett Pre - Order WWE 2K15 On Games The Shop
Smartphone, Tablets And More Fixed Fast At CPR Cell Phone Repair’s New Store In Eden Prairie, MN
SAMART I-Mobile And Siano Partner To Deliver The Next Generation Of TV Over Mobile – HD TV
Global Invacom Chooses TowerJazz’s SiGe BiCMOS Technology For Its New Revolutionary Chipset For Software Configurable Satellite TV Reception
Research And Markets: 2014 Report On The $1.9 Billion Electric Lamp Bulb And Part Manufacturing Industry In The U.S. And Its International Trade
iBall Launches ‘THE PERFECT SELFIE PHONE’ – Enigma!
 
   

Weekly

15 Skills That Make You A Real Geek!
Find The 15 Best Tech Jobs Along With Their Salary Structures
Top 30 Python Projects In GitHub
10 Most Important Facts About Linux Mint 17
HP Opts For Open Source Technology For Its Cloud Storage, Acquires Eucalyptus
12 Topmost Hacking/Security Tools
Microsoft Starts Text Search For Audio And Video Content
Top 10 Free And Open Source Blogging Platforms For Developers
15 Steps Which You Need To Follow After Installing Ubuntu
Get Best Linux Features On Windows Now!
IBM Accelerates Innovation Around Cloud, Big Data And Analytics, Mobile And Social
5 Tips To Help You Improvise LibreOffice Writer Experience
WordPress 4.0 Update Released With Multiple Improvements
Best 7 Open Source Alternatives To Tally
16-Year-Old Indian Boy Invents Device To Turn Breath Into Speech
7 Steps To Follow For Auditing With Kali Linux
 
   

Overall

Agility Systems Deals in:

Document Management System for law firms
Features
5 Reasons Why You Need Bash Scripting
If you want to learn terminal commands, it's best that you learn bash scripts and cron jobs....
10 Must-Have Free Software In Your PC
We're sure you must not be in favour of paying an amount for the best software in your PC, when there are loads of available for free. So here are 10 ...
Best 10 CSS Editing Tools For Programmers And Web Developers
Having the best, user-friendly and simple CSS editing tools on any OS is always on the requirement list for programmers and developers....
Learn How To Create Animations Without jQuery
JavaScript animation libraries which bypass jQuery actually deliver incredible performance as they avoid DOM manipulation as much as possible....
10 Open Source Cloning Software For Linux Users
These cloning software take all disk data, convert them into a single .img file and you can copy it to another hard drive....
Top 18 Android KitKat Smartphones Available In India!
If you are looking to buy a smartphone with latest Android, here's a must-check list of devices for you....
12 Rules To Follow To Create Quality Code
If you're serious about developing quality programs, then you just need to follow these 12 simple rules....
15 Skills That Make You A Real Geek!
So you think you're a geek? Do you know how to zero fill your hard drive?...
15 Steps Which You Need To Follow After Installing Ubuntu
Are you confused about what to do with your newly installed Ubuntu and how to go ahead with this in coming days? Then here are 15 points which you nee...
Top 10 Free And Open Source Blogging Platforms For Developers
If you are looking for a blogging platform which is programmer-friendly, then here we provide you a list of 10 best free and open source blogging plat...
Boost Your Browser Security With 5 Best Apps
Are you scared of malware or online tracking? Then take help from these five good tools to ensure better security for your browsers....
10 Most Important Facts About Linux Mint 17
Linux Mint 17 offers compatibility with interesting hardware platforms and here are 10 facts which you need to know about Linux Mint 17....
Best 7 Open Source Alternatives To Tally
These alternatives are capable of executing all the functions which a traditional Tally software is capable of doing....
5 Tips To Help You Improvise LibreOffice Writer Experience
If you are into a long-term relationship with MS Office, then don't be scared, because here are five tips to help you with LibreOffice....
10 Best Features Of iPhone 6, iPhone 6 Plus
Here's why Apple's recently launched iPhones should impress you!...
 
  View All
Dialogue
 
10 Questions That Google Never Asks While Hiring!
Here is a list of 10 questions that Google just banned from their interviews....
For Enjay, Open Source Technology Is A Way Of Life
An entirely open source-based company, Enjay IT Solutions, has built itself a reputation in the OSS domain....
Switching To Tizen Doesn’t Mean We Are Abandoning Android: Samsung
The company has worked to build Tizen up from scratch and has now introduced it to developers and the general public with its latest range of wearable...
Venturing Into The Cloud? Develop A Customised Cloud Strategy First!
Diksha P Gupta speaks to Rushikesh Jadhav, cloud evangelist, ESDS Software Solution Pvt Ltd, on how the cloud has changed the way compan...
HTC Is Strong And There Are No Plans Of Sale Now Or In Future, Says HTC's Senior Director-Marketing
Atithya Amaresh from EFYTimes had an exclusive chat with Sirpa H. Ikola, senior director, Marketing, South Asia, HTC about its devices and its plans w...
   
  View All
Videos
 
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
   
 
Events
 
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
electronicsforu.com
efytimes.com
opensourceforu.com
electronicsb2b.com
Electronics Annual Guide
EFY EXPO INDIA
EFY EXPO WEST
ELECTRONICS ROCKS
EFY Awards
OSIDAYS Expo
Electronics
Infotech
Linux & Open Source
Consumer Electronics
Science & Technology
BPO
EFY Techcenter

Educational Kits
Kitsnspares.com  
 
 
© Copyright 2014 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