LG to open 100 mobile stores

Mobile handset manufacturer LG Electronics today said it will open 100 exclusive brand stores to enhance visibility.

Eyeing a market share of 10 per cent by 2010-end in a projected 10 crore mobile handset market this year, the company has set a target to double its retail distribution network from 20,000 dealers to 40,000.

"We will open 100 exclusive mobile handset brand stores across the country so that customers can come and feel the new product range," LG Electronics Business Head, Mobile Communication, Sudhin Mathur told reporters here.

"According to market research agency GfK, we at present have 5 per cent market share. We have set a target of 10 per cent market share in an estimated 10 crore mobile handset market by this year-end, and consolidate our No 3 position amongst the top five players here," he said.

The South Korean firm has earmarked a budget of Rs 290 crore for marketing activities, including to ramp up its footprint.

Aiming a Rs 3,000-crore turnover by the year-end in about Rs 26,000 crore domestic mobile handset market, LG expects 20 per cent contribution coming from sales of youth-centric handsets priced between Rs 4,000 and Rs 8,000.

Targeting the youth, the company is coming out with 44 new models of mobile handsets by the year-end. Of this, 22 models have already been launched. It launched two new models - GS290 and GS500v - offering one touch application for social networking facility.

"We will now focus on the launch of models of smart phones and dual SIM mobiles," Mathur said.

According to market analysts, close to 250 million 3G subscribers will be added in the next three years, while the company estimates that close to 400 million sets will be added by 2013 with the roll out of 3G services.

"Besides 3G, the next growth engine for industry shall be replacement of handsets in tier-I and tier-II cities for value addition," Mathur said. "Nearly 400 million sets are expected to be added by 2013 after 3G rollout."

"The company has close to 900 touch points across the country, including 620 authorised service centres, where 81 per cent of our customers get service in less than an hour," Mathur claimed.