EFY Times  
Tuesday, March 03, 2015

 
GO
 
 

Assembled PC Segment To Drop 20 Per Cent
 
Home >> Infotech >> Interviews
 
Assembled PC Segment To Drop 20 Per Cent  
 
Owing to the hard disk crisis, supply has taken a hit and prices have increased, leading to a dip in the assembled PC market.   
Rate this news:  (1 Votes)
Friday, June 29, 2012 NEW DELHI, INDIA: LG Electronics retained the top slot in monitor sales this year with 23.3 per cent market share. It is aiming 31 per cent for 2012. This, when the economic conditions are not favourable and the monitor industry is expected to be stagnant this year. Owing to the dollar fluctuation in recent times, LG may also hike prices by next month.

EFYTimes spoke to Sanjoy Bhattacharya, IT head, LG India to know more about the current market conditions, LG's changing channel strategy and efforts to retain the number one position in the monitor market.

Sanjoy Bhattacharya, IT head, monitors, assembled PC segent, assembled desktop segment, market, economic condition, depreciating rupee, dollar fluctuation, lgchannels.in, channel partners, laptops, optical drives, hard disk, price hike, panel, import, components, IT vertical, channel strategy, regional distributor, sub distributor, decrease, dip, drop, schemes, market share




Will the price hike be applicable across the vertical?

SB: Almost all our products are imported. Seventy per cent components of monitors are imported. Laptops and optical drives are 100 per cent imported. There are chances that the price hike will be applicable immediately for laptops and optical drives. Since 30 per cent components for monitors are manufactured in India and only the panel is imported from China, we may defer the price hike for some time.

According to the industry, the monitor market is going to be stagnant this year. How is the industry performing?

SB: After the Thailand floods, earthquake and other natural calamities, there is an ongoing hard disk crisis owing to which the hard disk supply and prices have gone up for the assembled PC market. The assembled PC segment has taken a dip, which can be anywhere between 30-35 per cent over last year. Till this phase continues, the assembled PC segment will not increase. Until the supply and price gets restored, the market will not recover.

Already, six months of the year are over, and so the loss incurred in these months cannot be recovered in the remaining six months. This year, we expect the industry to decrease by 20 per cent in the assembled monitor segment or assembled PC segment. Next year, when the hard disk supply and prices will be stable, we expect a 30 per cent growth.

Can you tell us about LG's channel strategy?

SB: This year, we are fundamentally changing our channel strategy in a big way. We are consolidating the number of our regional distributors. We had around 200 regional distributors across India and are now bringing the number down to 80. As the market is not growing right now, we want to give bigger business to the existing people rather than doing smaller business with many people.

Under regional distributors, we will get in 1,400 sub-distributors across India and under them we will create 14,000 authorised system assemblers. Appointment of sub-distributors will be a new tier for us. We will authorise them for reselling. As of now, only the distributors are authorised for reselling. Distributors will supply to the sub-distributors who will further sell the product to the authorised system assembler. That is a three tier plan we are doing. Our earlier channel was never recognised properly. Now, we will follow a systematic approach.

Are you suggesting that you are appointing all new sub-distributors and authorised system assemblers?

SB: We already had sub-distributors. We are reframing them in different environments and in many new identities. In case of system assemblers, it is a huge task to manage 14,000 people. We are also creating our website lgchannels.in to manage the performance and incentives of 14,000 people.

How has the response been to the portal for your channel partners lgchannels.in and how has it been beneficial to LG?

SB: We started this portal in March. We have over 5,000 registrations as of now. We are in the process of selecting 1,400 people out of these 5,000, who will be the potential sub-distributors. The others will work as system assemblers.

Once we announce the program, we expect many more to log in to the system. With the help of this website, the sub-dealers will come to know about LG's program and contact point, and any escalation or other similar issues.

Every quarter, you come out with channel engagement programs. What are the kind of schemes that you have for dealers?

SB: In March, we had a very successful program called 'Buy LG Feel Lucky', in which, every day, across India, over 100 gifts (valued between Rs 1,000 and Rs 8,000) were given out to partners. Dealers had to buy minimum two units to register their purchase and every day, we used to take out a lottery. That particular scheme received a very good response.

In April, we did a program called 'Naya Vikas Patra' for customers and dealers. Once anyone bought nine monitors from our distributor, and immediately he or she was given a gift.

In May, we came out with one of our biggest consumer programs. The scheme will go on till September end at least. With every LG monitor, we are giving a full version of the McAfee anti-virus (valid for one year) to consumers.

Are there any other schemes that you are planning to start for customers or channel partners soon?

SB: Yes. We are planning to come out with incentives for the 14,000 system assemblers. So far, we don't have any specific program, but we will come out with a very unique proposition that will be announced by July 1.

LG currently has a 23.3 per cent market share and is aiming at 31 per cent in 2012. How are you planning to achieve this growth?

SB: In the last quarter, we had withdrawn from the 39.6-cm (15.6-inch) LCD monitor category. This particular category forms around 33 per cent of the industry. In June, we relaunched the product. After its relaunch we will definitely gain some market share in that particular segment.

So, one is the new product introduction, the second is the new distribution structure and the third is the consumer offer like the one-year version of Mcafee, on which we have received a very good response so far. These three steps will help us gain market share.

What was the reason for withdrawing from this category?

SB: Initially, we thought the Indian market will be moving toward 50.8-cm (20-inch) and 53.34-cm (21-inch) and we discontinued the product, but it was a wrong prediction. Last year, the market was headed toward high-end, but then, the hard disk episode happened. Now, there is a high pressure on the assembled PC price. We have seen a huge demand for the low-end monitor and that is why we decided to relaunch the product.

Upasana Rajpal, EFYTIMES News Network


Print Email Post Comment 
(Total Views: 3047)
 
Share

 
 
Infotech News
   
MakeMyTrip Mobile App Wins The Most Innovative Travel App Award At The GSF Mobile Appies Awards 2015
Celebrate Holi With Abhibus.com
Share Ideas & Suggestions For The PMO Mobile App On MyGov
MediaTek Introduces A New Convergence Standard For Cross-Device Sharing With CrossMount
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

Weekly

Oracle Advances Vision For Enterprise Big Data
Informatica Modernizes Data Management With Cisco To Fuel New Business Insights
Avnet Technology Solutions And Delta Energy Systems Partner To Deliver Cleaner, Greener UPS Solutions In Australia
Facebook Introduces Open Source Tool For Detecting Issues In Android Apps
Now Store 50,000 Songs In Google Play Music Cloud Locker
Apple iPhone 6, iPhone 6 Plus See Price-Cuts In India
Union Budget 2015-16: Key Highlights
Asus ZenFone 2 Coming To India In Q2!
Red Hat Introduces OpenShift Commons Community To Drive Innovation In Open Source Platform-As-A-Service
iGate Likely To Lay Off 5-10 Per Cent Of Its Workforce!
Windows Is More Secure Than OS X, iOS And Even Linux!
Intel XDK All-In-One HTML5 Development Environment
Android One Phones Get Android Lollipop Update In India
MWC 2015 Round-Up: What's In Store From Sony, Asus, LG And Lenovo!
Microsoft Lumia 640, A 4G Budget Smartphone Spotted!
eToro Chooses TelecityGroup’s Cloud-IX To Drive Innovation Via The Hybrid Cloud
 
   

Overall

Features
5 Reasons To Choose Linux Mint Over Ubuntu!
Linux Mint is more recommended over Ubuntu by experts and here are five reasons for the same....
9 Ways To Learn How To Code!
Programming is a fun learning process if you are following the right path. Here are nine ways to teach yourself how to code....
Top 5 YouTube Downloader Tools For Ubuntu
Here are five easier ways to download YouTube videos on Ubuntu....
Top 10 Best Paying IT Job Titles For 2015
Here are top ten job titles in IT that pay over $90,000 per annum....
10 Programming Languages To Learn In 2015 To Secure An IT Job!
Are you looking for a job in IT? Here is the list of programming languages that you must know to crack the job in 2015....
Top 8 CAD Apps For Linux!
Looking for fully-functional CAD software for Linux? Here are eight best suggestions for you....
Top 5 Bit Torrent Clients For Ubuntu Users!
Are you looking for Bit Torrent client for Ubuntu? Here are the top 5 clients that you should consider using....
6 Most Common Java Performance Problems
Java performance is an issue of interest for all Java application developers. Here are top six most common Java performance issues....
6 Best Chrome Apps To Boost Your Productivity At Work!
Here we have brought you a list of great Chrome apps which can certainly increase web productivity while at work....
Key Differences Between Comparator And Comparable In Java
Even though both interfaces are used for comparison, there are some difference between them. Here are six major differences between the two important ...
9 Factors Why Bugzilla Is The Best Bug Tracking Tool
Here is why developers should consider using Bugzilla for squashing bugs....
7 Sublime Text Packages For Front End Developers
Here are seven best sublime text editors for front end developers....
6 Ways How Hackers Can Exploit IoT Products
IoT (Internet of Things) seems attractive but, it is not very secure. Here are six ways it can be the next biggest target of hackers!...
9 Characteristics Of A Bad Software Engineer
Are you a software engineer? Make sure that you don't possess following qualities in you....
8 Worst Phishing Scams Of All Time!
Here are the worst phishing scams which are also the most famous ones....
 
  View All
Dialogue
 
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....
“Elcom Plans To Build A New State Of The Art R&D And Manufacturing Unit In Maharashtra", Reveals MD Girish V Vaze
Starting out as a small business to cater to the industry’s need for import substitutes, Elcom International has grown to be a leader in the field of ...
Delta Magnets Ltd To Enter Into JV With Chinese Company!
The company had partnered with TDK Japan for technology transfer to manufacture magnets in India....
"Littelfuse Is Growing At Around 20-25 Per Cent In India And Expect That To Continue", Predicts VP Deepak Nayar
On the electronics side, Littelfuse has registered an 8-10 per cent growth, year on year....
10 Questions That Google Never Asks While Hiring!
Here is a list of 10 questions that Google just banned from their interviews....
   
  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 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