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LG, Samsung corner half of white goods market

24-December-2005
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LG, Samsung corner half of white goods market

Korean brands, LG and Samsung, have cornered nearly half of the Rs 10,000 crore Indian home appliances market for the first time in the later half of this year. While the LG leads the market with around 35 per cent of the overall market, Samsung improved its position from around 13 to around 16 per cent now.

In fact, except in the refrigerator segment, the two now have combined turnovers greater than the rest of the brands in all the major segments of the market.

In the refrigerator market, which accounts for the biggest chunk of the market at around Rs 4,000 crores this year, Samsung emerged as the biggest gainer since the close of last financial year.

Since April, it has not only overtaken Godrej to become the number three after LG and Whirlpool, but has also seen a steady increase in its market-share since then- from around 12.5 per cent of the total value to around 17 per cent now.

In the washing machine segment too, estimated to be worth around Rs 1,500 crores this year, the company was able to increase its presence from 13.3 per cent share to 19.2 per cent share while its share in the microwave market too improved from 18.5 to 24.6 per cent.

The company, which had a 15 per cent share in the retail-consumer AC market, was also able to improved its position by around 1.5 per cent over the last seven months.

"We have introduced 50 new products in the home appliances segment, including washing machines, refrigerators, microwaves and ACs. Besides this, the company has also been making special efforts to expand our distribution channels. Since the beginning of the year, it has expanded by 20 per cent," said Ravinder Zutshi, Deputy MD, Samsung India.

However LG continued to be the dominant player in the market. Leading in all the four product segments, it has around 50 per cent more market-share than its closest competitor in each segment.

By value, the company has around 30 per cent of the refrigerator market, 34 per cent of the washing machine segment, 40 per cent in the home AC segment and 38.7 per cent of the microwave market.

The company is now planning to start manufacturing vaccum cleaners next month, extending its presence beyond the four-segment market dominated by the bigger brands. "We have been testing the market with imported vacs for the last one year. Now our sales have reached around 10,000 pieces a month and we think the time is ripe for us to start manufacturing at our Noida plant," said Girish Rao, head of Sales at LGEIL.

Among the others, Godrej saw its marketshares go down in both the washing-machine and refrigerator segments while Videocon, which saw a slight decline in the refrigerator market, was able to improve its position in washing-machine segment.

Whirlpool faced the opposite situation an improvement in position in the refrigerator market and a slide in washing-machines. Washing machine major IFB, a specialist in front-loaders, also saw its presence decline from a value share of around 10 per cent in April to around 6 in October.

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