LG India bets big on rural markets
Completing 20 years in India, LG Electronics is giving special focus on rural growth, health-conscious products, besides focusing on premium products, such as smarter appliances with IoT functionalities for its next phase of growth.
According to LG, it continued to aim for double-digit growth on the back of innovative products and focus on strengthening product leadership, besides operations excellence. India is among the top five strategic markets for LG globally.
Kim Ki Wan, Managing Director, LG Electronics India, “Unlike some of the global markets, India has continued to show potential for growth in the last couple of years. So, there are a lot of expectations from the Indian market. India has the potential to be among the top two key markets for us, besides China. We believe that the current government’s push to boost the rural economy will further expand this market.”
Kim agreed that factors like demonetisation did impact the dynamics of the Indian market.
“India is not a simple Market. Indian consumers are very sophisticated and evaluate various aspects of products comprehensively before they make a purchase decision. This year, we will complete 20 years in India, and this means we have accumulated the knowledge and deep understanding about this market. This is the reason why we have comparatively seen higher growth than our competitors last year,” he added.
On rural growth, Kim said, “With the government’s initiatives such as electrification of villages and investment in infrastructure in rural areas, rural demand for consumer durables will grow significantly. But these products will need to be simpler and targeted at first-term buyers.”