LG Electronics has finally found a distributor in the south. Chennai-based Wellwin Industry Ltd has tied up with LG to distribute its monitors, CD ROMs, DVDs and
It was becoming obvious that the difference between LG and Samsung’s market share in the south was widening to the advantage of the latter, compared to other regions. LG was looking for a distributor in the south to narrow this gap and with the current tie-up that search gets over.
“We have nine branch offices in the south and LG wants to exploit our wide reach,” says Sudhir S, Wellwin’s GM. He has set a target of Rs 75 crore out of LG products in the next twelve months.
Wellwin will strive to make available all LG products at its branches in the fastest way possible. Opines Sudhir, “LG’s brand equity and Wellwin’s reach should help reach the sales target easily.”
That perhaps is easier said than done because Samsung is well entrenched in the market. Wellwin will have to work hard at LG products to beat Samsung in the market share game, taking advantage of the logistic support that it can muster across south.
What will work to Wellwin’s advantage are the service centers that LG operates in major metros and towns. Thus, Wellwin does not have to worry about servicing LG products that it will distribute.
The current distributors of LG include Aditya in Delhi, Compuage, Priya and ACI in Mumbai. While these distributors played a major role in north and west, south was left alone. “Wellwin has filled up that gap,” points out Sudhir.