LG - delivering better business opportunity for its partners!

R. Manikandan,
Business Head - Business Solutions, LGEIL

What kind of trends do you see in the IT industry, especially in the Indian market when it comes to selling solutions to SMBs? 

India has a huge SMB market which plays a strategic role in the economy of the country. There is tremendous opportunity in this sector which can be further assisted through technological advancement.

It has been a year that you have announced solution selling approach for SMBs specifically. Does it mean no more of standalone product sales? 

We have received overwhelming response in a short span of time. LG SMB solutions offer a complete package designed to meet the basics of a small business' network. The products deliver advanced features at an affordable price. 

A solution is typically a product or a service or mostly a combination of both which is said to resolve customer's recognized problems and provides measurable improvements.

Our strength in high quality products provides us a very strong platform to offer SME customer-oriented solutions which help them reduce cost or earn better margins. We continue to offer standalone products as well as integrated solutions to our customers.

What market vertical have you defined for yourself as part of this new initiative? What is your market share?

Currently, we have presence in NCR, Punjab and Gujarat for SMB business. During this short span of time, we have gained 10% market share in SMBs. We expect SME business to contribute 25-30% to our B2B revenue in the medium to long run.

Tell us something about your offerings for the Indian market? How different are they from the global suite of offerings?

The LG SMB Solutions is a perfect business model for SMB owners, providing a full range of electronics usually used in offices “at one stop”. 

As an integrated solution provider, we will offer:  

• Desktop Virtualization Solution (Network Monitors) 

• Digital Signage Solutions

• Multimedia Projector 

• Commercial Display Monitors - Sturdy, high quality displays  

• Hotel Infotainment Solutions - LG Hotel TV and Hotel Infotainment Broadcast  Solutions

• Video Conference Solutions for SMBs

In the next phase, we will offer a wider range of electronics including microwaves, coffee machines, printers, and much more. 

How are you enabling your partners to graduate from box-pushers to solution providers?

LG plans to support resellers by organizing promotional activities to raise awareness on LG SMB Solutions among both target users (SMBs) and potential users (general customers). We intend to build SMB Experience zones for customers to visit and explore the right products. LG has constantly invested in partners' training programs to make them aware about the latest trends in technology and our solutions range.

What is the partners' role in selling your solutions? 

Business partners play an important role in the development and success of any business model. Partners are a touch point between the company and customers. We always consider our business partners in our customer satisfaction strategy and programs.

Our SMB business is driven by our progressive channel strategy. Considering the complex nature of the SME market, we h ave deployed a differential channel strategy which encompasses IT/ AV/ Security System Integrators, IT/OA resellers, hospitality, infrastructure and education solution providers.

The channel strategy aims at optimum geographical and vertical coverage while providing enough scope to partner for mutual growth.

Do you have selective partner engagement for services or does LG handle it on its own?

LG provides direct services to end-customers either directly or through our authorized service providers. This gives our partners more time to focus on their core area of marketing and growing their business.

What kind of margins do partners get?

Depending on the complexity of solutions, our partners can get 10-20% margin. 

Which are the most popular products which are selling more in the market?

As mentioned earlier, we received fabulous response for our range so far. Our top selling products are Network Monitors, Projectors, Commercial LCD/ Plasma Displays.

What are the opportunities for channel partners?

LG believes in creating better business opportunities for its partners.  Channel partners play a new role in generating fresh revenue for the vendors. In order to empower its channel community, the vendors active in the Indian arena have always endeavoured to create a right platform for them. 

In this space, LG has always created a paradigm for other players. Right from the beginning, LG has launched various types of incentives - training, road shows, schemes, etc. for its partners. LG always takes initiatives to make it easier and more profitable for partners of all business models.

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 Satish Toshniwal, Proprietor,
 MBT Infosys (Kolkata)

MBT Infosys is part of 27-year-old MBT GROUP, which was founded in 2000 as an IT peripherals trading partner and gradually transformed itself into an IT hardware, software and peripherals business partner of world-famous brands. It offers the widest and most impressive product portfolio in the computer market and leads the market purely on the strength of its advanced technology, product quality, customer loyalty and extensive support infrastructure.

According to them, the market trend in India for LG is shifting from low-end to higher end. The overall market size for TFTs is 15,000 numbers approximately and LG's share stands at around 40 per cent. The products which MBT Infosys caters to the market are Monitors (LCD, LED & Monitor TVs) and Optical Drives. “The demand for LED monitors has increased considerably in comparison with that of LCD monitors and LG’s upcoming product. The Monitor TV looks to be the next big thing in the market,” adds Satish. The most popular product which is selling in the market is 16” and 18.5” LCDs.

They are able to offer services throughout the length and breadth of West Bengal, including interior and remote areas based on its extensive presence. “Our role in deploying the products is to sell and distribute it to the channel, i.e., Resellers, System Integrators and corporates. Not only this, we also help in generating demand of the products by displaying the products.”

We enjoy healthy margins on LG business because the company has always maintained the MoP and profitability is also higher in the sale of premium products. Above all, the company offers other benefits and incentives like holiday at a foreign location etc.

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Manish Sanghvi, Proprietor,
Sanghvi Computers (Chennai)

Ten years ago, LG started Regional Distribution model. We are the regional level distributor for LG for a long time. LG is a living example, which not only says but practically does share all joys and sorrows with their regional distributors.  For LG, each level of partner association is equally significant. 

Margins in dealing with LG products are as per the industry standards. Overall, RoI is good. LG maintains scientific price positioning, which means margin goes up with premium products. After-sales service support is very important in this industry and LG has its own authorized service centres across India and on some products the company offers replacement warranty too, which acts as its USP.

We feel that LG is the most-sought after brand when it comes to monitors from LED to LCD, followed by their recently introduced Monitor TVs, DVDRW, Slim portable DVDRW and Bluray.

Currently, we are involved in the sales of their LCD & LED monitors, monitor TV, DVD writers (both internal & external), Digital photo frame. Very soon we would be roping in their Laptops, which are on the cards. Also, company is planning to come out with ultra slim LED Monitors, All-in-One PC, note book, net book, 3D monitors, security products and many more.

As a LG RD we feel, as LG is the best company I have ever worked with. The company always fulfils their commitments and stands supportive to their RDs. Association with top global brand like LG is always a matter of Pride & social prestige. In other words, getting good and innovating products with good margin and regular schemes like foreign travel are some of the tangible benefits.

For more contact:
beenish@varindia.com