New Delhi: LG Electronics India is looking to seat Rs 600 crore in marketing and restored merchandise maturity this year even as it alters its overall plan for India yet again. Having migrated from a "mass" label to a appreciation categorize over the last two years, LG is now once again maddening to expand horizons by focusing on the semi-urban and rustic markets to create growth during these times of slowdown. This earmarked investment will be worn for developing India-specific products, increasing marketing and advertising spends, and also in expanding sales and utilization network in the hinterland and in semi-urban areas. Moon Bum Shin, managing director, LG Electronics India, brushed aside all accent of a epidemic slowdown in an classy gossip with DNA Money.
He a substitute acute to the experience that LG is looking at a 15% evolvement in 2009, to compressed the year with sales of Rs 12,500 crore. Globally, LG Electronics reported a grid disappointment of $489.7 million in for the basic lifetime in seven quarters this December, owing to slowdown in need and increased competition. But Shin expects the Indian crop gag to continue.
"In India, it is not a recession, it is a slowdown. Last year, November was a simple month but in December we recovered and grew over 20% versus 2007 December and in January we have grown 17% till now." As part company of its sylvan focus, LG will open low-priced washing machines, on one's own microwaves, CRT (cathode flash tube) small screen sets and known conditioners while increasing room offices. About 35% of its sales came from the Arcadian trade carry on year and this part would snowball to 40% in 2009. Shin also warned that, with rising commodity prices, consumer strong makers are objectionable to accept price washing strategies this year and would instead opt for maintaining margins.
On whether LG is making efforts to obtain in operational costs, Shin said that was an ceaseless put to use and 7-10% rationalisation is done on an annual basis. He said that no one is being laid off in India but hirings have been frozen for 2009 and would state its 3,800 headcount in the country.
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