LG expanding channel for PCs

After an encouraging response to its Linux based PC, LG is looking at expanding reach for its PCs. The expansion will
however focus on retail. The company understands that exclusive retail outlets will be difficult to come
and is therefore promoting the shop-in-shop concept.

"We are looking at creating a great business opportunity for retailers," says R Manikandan, Deputy GM, LG India. LG is
promising the retailers a number of deliverables including demo units, in shop branding and
advertising support among others. Since the outlets will not be LG exclusive, the retailers will have the
opportunity of bundling complementary products and also upselling to the customers. And to further ensure an appeal to a larger audience set, LG is
coming out with newer models. These will include SKUs targeted at the entry level as well as the high end. "A number of new SKUs are undergoing tests as
of now," adds Manikandan.

This expansion drive has come up after the company's success in the PC market especially from the non-metro markets. "As
much as 65 percent of our sales have come from non-metros," says Manikandan. While the company has no
set number target for new retailers, it wants incumbents to have retail outlets in prominent location in their respective cities. "All new retailers
signed on will be provided adequate sales and product trainings," says
Manikandan.

Manikandan added that LG will work towards creating a retail sales force that can add value to the entire PC buying process
and not be just box pushers.

MOHIT CHHABRA