Samsung And LG Target India’s Rising Online Market

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  • LG Electronics India business head also shared that the company owned e-store will focus on the premium-end products with an assortment of 150 models right now, but will eventually sell 60% to 70% of its entire portfolio
  • Samsung Electronics Indian unit is also looking forward to expanding its online sales. Last month, the tech giant said it forecasts its online store to contribute around 10 percent of its overall business in mobiles and consumer electronics

According to the report published by the industry officials, Samsung Electronics and LG Electronics have been venturing for the expansion into India’s fast-growing online market to diversify their sales channel amid the prolonging COVID-19 pandemic.

Like other Electronics manufacturing organisations, the two Korean companies struggled with business there as their offline marketing activities have hit a snag due to the Indian government’s lockdown restrictions. The companies have claimed that they are beefing up their e-commerce sales channels at a time when India’s online market has been experiencing an explosive growth in the wake up of the virus pandemic, prompting consumers to purchase their goods online. 

Direct-to-consumers sales channels 

LG Electronics’ India branch has also launched its own online store as part of its efforts to expand its direct-to-consumers sales channels. The company also revealed that it had decided to open the online store to ride on the increasing popularity of the e-commerce market and added it plans to increase the number of items available in the online mall.

Deepak Taneja, LG Electronics India business head also shared that the company owned e-store will focus on the premium-end products with an assortment of 150 models right now, but will eventually sell 60% to 70% of its entire portfolio.

The Indian branch also added that LG will use its network of existing warehouses and will outsource the delivery of appliances via its online shopping mall to third party logistics firms. 

Tie-up with logistic companies

Taneja also added that “The entire buying process will be run and controlled by LG and we have tied up with logistic companies for last-mile delivery from our warehouses Online sales for us have grown by 100 percent by value in the last one year while it has been 30 percent to 35 percent for the industry.”

As reported, the Indian unit would initially start the delivery of products through its online mall in a limited number of cities which include Delhi, Mumbai, Hyderabad, Ghaziabad, Gurgaon, Noida, Kolkata and Bengaluru, and will expand to other major cities. 

Samsung Referral Program

Samsung Electronics Indian unit is also looking forward to expanding its online sales. Last month, the tech giant said it forecasts its online store to contribute around 10 percent of its overall business in mobiles and consumer electronics. 

The company has launched a series of online promotions such as the Samsung Referral Program, which enables its existing customers to help their family and friends in getting discounts on phones and other products to accomplish the goal.

On Aug.13, the Indian unit announced the launch of a new service called Experience Samsung at Home, which would enable consumers to explore and purchase Samsung’s Galaxy devices such as smartphones, tablet PCs and wearables. 

The company elaborated the measure to help its offline retailers has “resulted in a sharp recovery in our smartphone business post-lockdown.” 

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