LG Electonics India is eyeing the digital audio video (DAV) segment as part of a strategy to explore new markets. Car audio systems, MP3 players, karaoke systems, DVD recorders and handheld devices like PDAs will form a part of the portfolio of new products the company is planning to launch next year.
Apart from pushing the new range through its existing distribution set up, the chaebol plans to create a separate network through car accessories shops, seconds car dealers and exclusive tieups with car manufacturers particularly to push its car audio systems range.
Girish Rao, VP, marketing and sales, LG, says that the foray into the DAV segment comes along with the focus on GSM mobiles and flat panel televisions. “More than margins, there is a huge potential in terms of volume through this segment.
We will be launching the products by early '07 and are targetting Rs 500 crore in revenues in the first year,” he says. The move, explains Mr Rao, is a part of LG's strategy of looking at new growth opportunities in its quest to reach Rs 18,000 crore by '10. The DAV segment is expected to contribute as much as 15 % to overall revenues in the near future.
At the retail level, LG will shortly roll out a programme aimed at the traditional channels like multi brand outlets and chain stores. The company is creating dedicated teams to look after the trade channels - brand stores, MBOs and chain stores. Each team, will be responsible for creating the right retail environment in the designated channels.