Rural market is more sensitive to brands

My predecessor MB Shin has been a great leader and has created incredible benchmarks for us in LG India. I look forward to adding to that legacy and taking the company to newer heights. I will work on enhancing our position as the premium brand in the market. Hence, we will focus on investing in R&D to create products with smart technology and stylish design. We will also be investing Rs 800 crores this year to ramp up our manufacturing.

The mobile business has been a weak point for LG Electronics both globally and in India. What will be your strategy to strengthen the mobile vertical? Currently what is the contribution of India's mobile business to the overall global mobile segment at LG Corp? Is their any renewed target for India keeping in mind the 3G services?

We have launched products like Optimus 2 X 3D phone in the Consumer Electronics Show and Mobile World Congress. The response has been very good till now. Our focus is now going to be smart phones. In India we are planning to launch six smart phone brands on Optimus platform in 2011. Also we are planning to set up a new production line for the product next year at our greenfield facility in Pune. Already we have 12 models of 3G in our present line up and will be launching 16 more 3G models this year.

Do you see the entry-level barrier coming down in the smart phone categories?

Our Optimus One is a perfect example for the same — Android 2.2 at Rs 12,000 is the perfect choice for smart phone users. Optimus One is one of the best selling model for LG in both global and India markets.

India, as your first managing director KR Kim says, India is not one country but it is like 29 countries in one.

India is a vast country and it is fascinating to see its vast geography and how the dialects of people change after every 100 kilometres. I will be travelling across the country to understand the culture and meet our trade partners. It is critical to understand consumers. I will be meeting trade partners and consumers to understand the environment and strategise for the company accordingly.

In 2010, LGEIL conducted research of the rural and urban markets, based on which it was supposed to come out with a new doctrine… Can you share key findings?

Rural market is more sensitive to brands. It looks for reliability more than urban market and for this, they are ready to pay more. We have a rural insight team in place to understand the needs and demands of the rural customers. It has completed its first round of survey and preparing for the second round. These findings will certainly help us in customising the product according to the requirements of the rural customers. We would then narrow down to one or two critical features on the basis of the survey findings, which will go into our products and marketed with the right communication.

Which are the new product categories LG in getting into this year?

India is a key market for LG and we are certainly looking forward for the best of flagship products across categories. We started the year with more than 51new models of air conditioners in January. Now, we will focus on our home entertainment segment and new products under home appliances as well. Our lineup for flat panel display, in terms of technology, looks promising this year. Globally, we have started launching the new 3D models and the response is overwhelming enough for us to replicate in India. We will focus on smart TV and 3D TV this year. For LG, 2011 is all about smart products including smart TV.

In your previous role, you were responsible for the company's growing revenues and building LG Business Solutions Company as a leading supplier. to businesses. Do we see you repeating the same in India?

We have been successful in consumer business and the enterprise segment is also promising. We have an entire range of computing products, security surveillance equipments, projectors, digital signage solutions and other appliances like refrigerators, microwaves, air purifiers and air conditioners customised for small and medium businesses.

You are in close competition with Samsung and in certain segments, they are ahead of you as in LCD and they also intend to beat LG in other segments such as washing machine, air-conditioners and refrigerators. How do you see the competition and what will be your strategy?

LG is already the market leader in various categories and the sale of premium products is growing much faster than that of entry-level products. We are targeting 100 per cent growth in our flat panel display business over this year.

With a growing economy and increase in disposable incomes, we are optimistic that there will be huge demand for smart appliances as consumers are looking for products enhancing their lifestyle.