EFY Times  
Saturday, October 25, 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: 2956)
 
Share

 
 
Infotech News
   
SBI Launches ‘mPassBook’ Facility In ‘State Bank Anywhere’ Smart Phone Application
Tata Consultancy Services Honored For Outstanding Contribution To The Germany-India Economic Eelationship
Strate, South Africa Selects TCS BaNCS For Multi-Asset Class Depository Operations, Expands Its Relationship With TCS
OptaSense Provides Revenue Assurance To LNG Pipeline By Reducing The Impact Of Third Party Intrusion
CyberArk Expands Privileged Account Security Solution To Include SSH Key Management
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

New White Paper From Boyd Corporation Discusses Noise And Vibration Analysis And Control
ASSET InterTech And Mentor Graphics IJTAG Interoperability Empowers Two-Way Validation Flow Between Chips And Boards
Pixability Announces Industry’s First Programmatic YouTube TrueView Optimization Platform
AEG Power Solutions: Strengthens Team With New Sales VPs
Renesas Electronics Europe Announces Wireless M-Bus Solution That Adds Communications To Metering Applications
SMIC Certifies Synopsys IC Validator For Signoff Physical Verification
DSP Group Introduces ULE For IoT Applications Over Intel(R) Puma(TM) 6-Powered Home Gateways
Global Wearable Electronics And Technology Market Outlook 2020: Adidas, Apple, Sony, Fitbit, Jawbone & Nike Dominate The Market
Silicon Labs C8051F97x Capacitive Sense MCUs In Stock At Mouser
This Diwali, DIGISOL Assures Loyalty To Its Channel Partners By Addressing Pricing Discrepancies On E-Commerce Site
 
   

Weekly

Android 5.0 Lollipop: 10 Most Exciting Features
Drupal Fixes SQL Injection Flaw In Version 7.32
Cloudera And Red Hat Forge Big Data Alliance
5 Ways In Which NFC Can Transform Your World!
Top 10 Flaws Of Hadoop That Are Seriously Annoying!
GPS Technology: Know The Basic Facts
MongoDB Recognized As The Only “Challenger” In The Gartner 2014 Magic Quadrant For Operational Database Management Systems
Top 8 Books On Hadoop Technology
Top 10 Big Data Technologies Of Present Times
Intex Aqua Style X And WIIO Wi5 Exclusively Available On ebay.in
AIC SB122-TO Offers 8Bay NVMe PCIe SSD Server Solution In 1U
Get Notified Instantly Of Important Changes Happening On Your WordPress
HTC Launches Desire 516C In India @ Rs 12,990
OFS CEO Rich Napoli Wins NJTC CEO Of The Year Award
Google Keyboard Update Brings Eight Regional Languages Support
3D Printing Technology Leads To Innovation Of Prosthetic Hand For Kids
 
   

Overall

Agility Systems Deals in:

Document Management System for law firms
Features
Top 8 Books On Hadoop Technology
Let's discuss 8 best books to learn Hadoop and how to get started with it....
20 Tools And Resources For Building And Testing Regular Expressions
Here we'll provide a list of 20 best tools and resources which will help you in writing regular expressions in a more streamlined way....
10 Scariest Hacking Incidents In The World!
A detailed report about the scariest side of hacking was recently released by WebHostingBuzz which gives us a list 10 scariest hacks and also possibi...
8 Best SVG Tools For Web Developers
There are some useful SVG tools which will of great help for any aspiring SVG developer. Take a look at the 8 best ones....
Top 8 Resources To Get Started With Go Programming Language
Go is a very well-structured language which has a syntax like the C language and it's very easy to learn....
Top 10 Big Data Technologies Of Present Times
Over last few years Big Data technologies are getting due attention and there are several trends and innovations in this space in recent times....
Top 10 Unexplored Areas In Java Programming Language
Here we will give you a list of 10 most unexplored areas of Java....
10 Best Practices An Independent Developer Should Follow!
Being an independent developer means you have to think beyond coding, about all partnerships and business prospective too....
10 Necessities For Modern Cloud Storage System
Here we will present a list of 10 requirements in the new generation cloud storage system of the 21st century....
10 Technologies Transforming Developers' World!
Here we'll discuss top ten technologies which are changing the nature of programming....
Ubuntu Turns 10! Here's All You Should Know!
On the occasion of 10th anniversary of Ubuntu, let's take a look at brief history of this renowned desktop distribution....
Android 5.0 Lollipop: 10 Most Exciting Features
Since the preview, Google has added lots of new features to the final release of the latest Android version. Here we will discuss top 10 features of m...
GPS Technology: Know The Basic Facts
Let's take a look how this GPS technology is operated in our daily uses....
10 Best Open Source Web Application Security Scanning Tools
Here we'll provide you with a list of 10 open source tools which are used to detect security vulnerabilities in web applications....
5 Ways In Which NFC Can Transform Your World!
Let’s have a look at 10 ways how NFC can actually rock your world in the near future....
 
  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