EFY Times  
Friday, December 19, 2014

 
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: 3002)
 
Share

 
 
Infotech News
   
Microsoft Announce Free Calling Deals For The Skype Users In India
Skillsoft Recognized As Learning Industry Leader
Windows Phone Device Users In India Get Microsoft Lumia Denim Update
Ultimate Robot Fighting Launches On December 18th
8 Data Breaches Of 2014 That Costed A Job
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

Weekly

Top 8 Open Source Machine Learning Tools
5 Myths And Mistakes Coding Job Seekers Do!
IITs, IIMs Will Now Offer Online Courses!
TCS May Give Pink Slips To Its Employees
5 Must-Know Basic Electronics Skills!
Top 10 Incredible But Not-So-Famous Google Tools
CA Technologies Helps Customers Stimulate App User Loyalty With APM Solution Designed For Simplicity, Mobility And DevOps Velocity
Micromax Canvas Selfie Arrives With 13-MP Front And Rear Cameras
YouTube App To Support Offline Viewing In India
Want To Learn Programming Faster? Try These Project Ideas!
Snappy Ubuntu Ensures Docker Container Security
Soon, Trains Will Have Laser System Installed To Remove Debris From Tracks!
Google Releases Cardboard VR SDK, That Can Turn Your Smartphone Into A VR Machine
Coming Soon: WhatsApp For Your Desktop!
When US President Barack Obama Tried Writing His First Line Of Code...
Google Nexus 9 Now Available In India @ Rs 28,900
 
   

Overall

Features
10 Tips To Write A Better Resume For An IT Job!
Looking for a job? Is your resume good enough? Let's find out....
5 Signs That Microsoft Is Making Azure An Enterprise Hybrid Cloud
The company's recent developments prove the future of Azure Cloud Services platform....
6 Hottest IT Skills For 2015
Aiming to get a good job in 2015? You must have the following skills!...
Debian Vs Ubuntu: Here Are The Changes Made In Last 10 Years!
Find out the historical differences made in both Linux systems over the period of past 10 years....
These Linux Desktops Have Better UI and UX As Compared To Windows And Mac!
When people think about Linux, they picture the old desktop PC with command line but, this picture has changed over the years....
Top 8 MySQL GUI Tools
This useful list of MySQL GUI tools can help you with your database management....
5 Must-Know Basic Electronics Skills!
These video tutorials can help you learn important DIY electronic skills!...
5 Myths And Mistakes Coding Job Seekers Do!
Here are the 5 mistakes and 5 myths that coding job hunters often end up doing!...
5 Misconceptions About Git That Developers Have!
The popular and flexible VCS platform Git is still criticized by few developers, courtesy the misconceptions!...
6 Useful Tips For First-Time Web App Developers!
Developing your first web app? This guide will help you to work smart....
Top 8 Open Source Applications And Projects Of 2014
Here is the list of top 8 cool open-source apps of the year....
7 Stages Of Drupal Learning Curve!
Drupal is hard, but Drupal is awesome! You can learn Drupal after crossing seven certain stages....
Top 12 ASP .NET based CMS Platforms
Building a website using CMS platform is easy if you are using the right CMS for your needs....
Top 10 Fastest Supercomputers In The World!
Ever wondered what would be the speed of world's fastest super computers? Here is the treat!...
Learn How To Get A Job As A Computer Security Analyst!
The word analyst doesn’t necessarily mean a boring job, in fact, it is very interesting. ...
 
  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