LG Electronics plans to cut television prices

Our Marketing Bureau

Hyderabad, Aug 10: In a bid to have a 15-per cent market share in the colour television segment, LG Electronics India, a major player in consumer electronics, is planning to reduce TV prices between 10 and 15 per cent to match its Indian competitors.

According to Mr Chandramani Singh, AGM of LG Electronics, “The strategy is not to compromise on technology but we will bring down the prices of all 30 odd models on par with our competitors”. As of now, the company enjoys about 9 to 11 per cent market share which it plans to increase to 15 per cent by the end of the current calendar year, Mr Singh said.

While the company sold about 4.75 lakh units in the last year, it targets to sell about 7 lakh in the current year, he added.

Saying that the company is seriously being hurt on the price as against the local competitors who are selling at low prices, Mr Singh said, “We can not sell our television sets at a low price as we were importing components and tube from Korea at a high excise duty.” Recently, LG Electronics had launched ‘Flatron Gold’, keeping in view the Indian market, which is more price-sensitive. The television will come with 24 exclusive features and in two models. However, on price count it is just 3 to 4 per cent higher (Rs 800 to 1000) than the other equivalent brands, he said.

Explaining the strategy to expand the market in Andhra Pradesh, Mr Singh said that the company proposes to enter rural and semi-urban markets in a big way.