Noida-based Fedders Lloyd Corporation Ltd is soon entering into a distribution agreement with JVC Japan for selling ?JVC? branded LCD TVs, car audios and camcorders in India through Fedders strong distribution network. According to company officials, with the move, Fedders Lloyd aims to be a full line consumer electronics company in India. As part of the strategy, plans are on the anvil to widen distribution reach to spur more volumes and garner a significant share in the Indian consumer durables market.
Incorporated in 1957, Fedders Lloyd, which currently has a network of 2,500 dealers apart from 19 brand offices, sells Lloyd branded air conditioners (ACs), DVDs, microwave ovens and washing machines targeted at 55 towns in India. According to ORG, between January to June 2007, Fedders Lloyd has a market share of 4.5% in ACs consumer segment, 5% in DVD and 2% in microwave ovens.
Unlike Korean consumer durables brands, Japanese brands are yet to create a strong foothold in the Rs 20,000 crore Indian consumer durables marketplace. According to industry experts, Japanese consumer electronics will have to be ready to face cut-throat competition through value for money pricing strategies at par with the existing giants, launch new innovative features, create good brand visibility and distribution reach in Tier II and III cities, and make available a variety of product models.
According to Fedders Lloyd officials, ?We are planning to expand our distribution network and offices to newer markets in 2008. However, we are not currently planning to set up our exclusive Fedders Lloyd branded stores in India.?
