“Chinese market failure should not be repeated”… Samsung and LG to target 1.3 billion populated India
Park Seul Gee | seul@ | 2017-05-10 10:26:00
The Korean electronics companies are playing a big role in targeting the Indian market, which has great growth potential among emerging countries. It is believed that companies are tackled by Chinese local companies, and if they will be even out of business in India, the entire overseas business may be threatened. Especially, Samsung Electronics and LG Electronics have been expanding sales of premium products in Indian market and are focusing on securing their position in order not to repeat failure in China.
According to Samsung Electronics on May 9, the company will expand its "Smart Healthcare," a social contribution program targeting vulnerable social groups in India, starting in 2015, throughout India this year. The program is a social contribution activity in which Samsung Electronics donates medical devices and household appliances such as medical clinics, public health clinics, small hospitals, and ultrasonic diagnostic devices along with x-rays.
Samsung Electronics representative stated, "We have recently opened a clinic in Telangana since we started this program in India two years ago. Until recently, we had 16 programs in India, and we have done 10 more this year.”
Samsung Electronics is strengthening its social contribution activities in India as the importance of the local market has increased. Most emerging markets are sluggish but sales is steadily increasing only in the Indian market. Samsung Electronics is accelerating its efforts to reach the premium market in India this year. QLED TV has been launched in India earlier this month which is two months earlier than usual, and took the initiative to preempt the local premium TV market. The company has also built a service system that can differentiate itself from its competitors. With 535 service vans available for on-site repairs, Samsung built a service system across India, which is 33 times the size of Korea.
LG Electronics, which entered Indian market in 1997, established local subsidiary in Noida, is trying to differentiate itself with locally specialized products such as mosquito preventing air conditioners and TVs. The company is focusing on localization strategies such as customized social contribution activities at the same time. With this strategy, LG Electronics` sales have grown 60 times over the last 20 years. Especially, the company is carrying out massive discount marketing and concentrating its efforts on catching the local market on the 12th anniversary of the founding of the 20th anniversary of the Indian corporation.
It is because India is the second largest market with 1.3 billion populations after China. In addition, local brands` market share is not high, and potential demand for premium products is high, which is favorable for both companies.
In fact, Samsung Electronics and LG Electronics` Indian subsidiaries are main factors for the both companies revenue increase. Last year, sales of Samsung Electronics` SIEL, an Indian electronics manufacturing and sales corporation, increased by 10.2% from the previous year to KRW 8,82 trillion, and net profit increased by 130.7% to KRW 753.2 billion. In the same period, sales of `LGEIL`, an electronics manufacturing and sales corporation, increased by 7% from the previous year to KRW 2.24 trillion and net profit increased by 73.8% to KRW 223 billion.
An electronics industry expert said, "There are active social contribution activities by leading companies as India is a big market and those activities may help to build stronger sales.”.
By Park Seul Gee seul@
[ copyright ⓒ The Digitaltimes ]
According to Samsung Electronics on May 9, the company will expand its "Smart Healthcare," a social contribution program targeting vulnerable social groups in India, starting in 2015, throughout India this year. The program is a social contribution activity in which Samsung Electronics donates medical devices and household appliances such as medical clinics, public health clinics, small hospitals, and ultrasonic diagnostic devices along with x-rays.
Samsung Electronics representative stated, "We have recently opened a clinic in Telangana since we started this program in India two years ago. Until recently, we had 16 programs in India, and we have done 10 more this year.”
Samsung Electronics is strengthening its social contribution activities in India as the importance of the local market has increased. Most emerging markets are sluggish but sales is steadily increasing only in the Indian market. Samsung Electronics is accelerating its efforts to reach the premium market in India this year. QLED TV has been launched in India earlier this month which is two months earlier than usual, and took the initiative to preempt the local premium TV market. The company has also built a service system that can differentiate itself from its competitors. With 535 service vans available for on-site repairs, Samsung built a service system across India, which is 33 times the size of Korea.
LG Electronics, which entered Indian market in 1997, established local subsidiary in Noida, is trying to differentiate itself with locally specialized products such as mosquito preventing air conditioners and TVs. The company is focusing on localization strategies such as customized social contribution activities at the same time. With this strategy, LG Electronics` sales have grown 60 times over the last 20 years. Especially, the company is carrying out massive discount marketing and concentrating its efforts on catching the local market on the 12th anniversary of the founding of the 20th anniversary of the Indian corporation.
It is because India is the second largest market with 1.3 billion populations after China. In addition, local brands` market share is not high, and potential demand for premium products is high, which is favorable for both companies.
In fact, Samsung Electronics and LG Electronics` Indian subsidiaries are main factors for the both companies revenue increase. Last year, sales of Samsung Electronics` SIEL, an Indian electronics manufacturing and sales corporation, increased by 10.2% from the previous year to KRW 8,82 trillion, and net profit increased by 130.7% to KRW 753.2 billion. In the same period, sales of `LGEIL`, an electronics manufacturing and sales corporation, increased by 7% from the previous year to KRW 2.24 trillion and net profit increased by 73.8% to KRW 223 billion.
An electronics industry expert said, "There are active social contribution activities by leading companies as India is a big market and those activities may help to build stronger sales.”.
By Park Seul Gee seul@