LG Electronics India, which is eyeing a 10% growth in the current year amid ‘tough’ market conditions, is working on developing an India-specific smartphone, Kim Ki Wan, MD, LG Electronics India told The Hindu.
“We need a compelling product in this vertical. We are now doing that. We are developing an Indian specific model not a global platform design or model. We are developing a phone from the scratch in India”, he said.
For instance, Mr. Kim said, Indians like taking pictures, so the phone’s camera needs to be good. “Features such as waterproof and shock-free, they cost more but Indians don’t need that. Our existing global platform models are not meeting the India-specific consumer insight.”
The company, which plans to foray into the ceiling fan segment next month, is expecting a growth of 10% this year even when “market situation is tough”. Mr. Kim said 2017 was full of fluctuations and challenges due to the roll out of GST, the new indirect tax regime.
On the current year, he said the company had ‘big’ expectations from 2018 with effects of demonetisation wearing off and GST stabilised.
“But we don’t know why consumers are still waiting for GST to go down, so sales are not as much as we expected. And there are new players coming in the market, so supply is increasing but demand is not growing.” The company is also mulling an increase in localisation post the increase in customs duty on products such as TV panels and PCBs.
Mr. Kim said that till such time, “the government should waive the duty. Businesses don’t like to lose money; we will be forced to increase the prices and that directly impacts the consumer.” The company is betting big on IoT devices and expects it to go mainstream by next year, reported the English Daily.
