LG bets big on mobile phone sales

LG Electronics' Global System for mobiles division is bullish on enhancing the visibility of its handsets in the market. In order to attain this, the company is planning to double up the number of its mobile retailing points from existing 10,000 locations to 20,000 by the end of this fiscal.



The company has identified the replacement or upgradation market that will give the needed thrust to its business. It introduced four new GSM mobile handsets--LG P-7200, LG S-5200, LG S-5000 and LG C2500--priced between Rs 7,000 to Rs 20,000, chiefly to gain a foothold in the replacement segment. According to figures available with LG approximately 15 million handsets users of mono segment will progress to color phones shortly, thereby opening up huge market opportunities for the vendor. According to HS Bhatia, Product Group Head, GSM, LGEIL, the mobile phone business will be the biggest growth driver for LG in 2006. 



Providing more comprehensive details about LG Electronics GSM division's plans to accomplish 300% growth target this fiscal, Deba Ghoshal, Head-Product Marketing (DDM) said, “The surge in the number of mobile phone users in India has sparked vibrancy in the market. We will channelize our market strategy for GSM mobiles along three lines. Firstly we would bank upon the comprehensive product mix, which will offer something for every prospective buyer that would be followed by consolidating the product visibility in the market.” 



Subsequently, it will launch new marketing campaigns to boost up sales. However, Deba conceded that LG mobiles have had lack of proper market availability that attributed hugely to moderate popularity of its handsets in the market. 



It is quite notable that when it comes to choosing mobile phones, people still prefer Nokia and the vendor has got hold of monopoly in India. Talking about how LG is attempting to make its GSM mobiles more acceptable Deba said, “We will first make provisions for better availability of LG mobiles in the market to gravitate larger customer base. We would greatly leverage our existing consumer electronics and handset appliances outlets to boost up market presence. We might also bring under our mobile distribution umbrella existing IT channels who would have proper shop front to exhibit GSM phones at their premises.”