Consumer electronics and home appliances company, LG, has entered into a strategic alliance with SBI Cards to launch India’s first co-branded credit card for the consumer appliances industry.
Called the LG-SBI Card, it can be 1used at over two lakh outlets in India and more than 30 million outlets around the world displaying the visual logo. The strong partnership will leverage the extensive national distribution networks of both LG and SBI Card to drive penetration. SBI Cards is a joint venture between State Bank of India and GE Money.
K.R Kim, President, South West Asia, LGE, and Managing Director, LGEIL, said, “The LG-SBI Card brings together two leading companies in their industries, both with a reputation for quality products, experience in providing superior customer service and innovation. Through the LG-SBI Card we hope to get even closer to our customers and drive long term relationships with them.”
Designed as a customer loyalty and rewards programme, the LG-SBI card, is equipped with features like exclusive rewards, benefits and promotional offers from LGEIL for the co-branded cardholder.
The card is an attempt at understanding LG customers and offering more in products, service and offers as rewards for their association with the brand.
The features of the internationally valid co-branded card include, flexi pay, which is an easy instalment plan at the lowest rate of interest, balance transfer facility at 0 per cent interest for 75 days, free purchase protection against fire and theft up to Rs 15,000 for 90 days.
Besides, the card will also enable the consumers to get transaction fee waivers on IOC and IBP petrol pumps for fuel purchase of more than Rs 400.
SBI Cards thrived on key proposition of speed, simplicity and service, said Roopam Asthana, CEO, SBI Card. “SBI Cards is always looking for innovative ways to add value and convenience to our cardholders. Developing new partnerships is a key part of our business strategy. LG, with its leadership position in the consumer appliances industry and wide distribution network, was the natural choice to be our partner for this co branded card,” he added.
LG and SBI Cards hope to garner five lakh card members by the end of 2005 and are targeting around one million cardholders by next year.
LG Electronics, which has 20 million customers at present, is expected to touch base with 30 million by the end of this year.