Saga of LG loss in Indian market
The company although been at the forefront of smartphone innovation, never been able to sustain through sales
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New Delhi: LG Electronics that was once the world's third-largest handset maker and saw its feature phone business peak some 10 years back, was never a serious contender in the fastest-growing India market, industry watchers reiterated on Monday.
LG that has shut down its mobile business, has been striving to make a turnaround in its mobile business in recent years, including launching the niche foldable smartphone called 'Wing' - a dual-screen device with a rotating form factor but its sales were apparently disappointing.
According to Tarun Pathak, Associate Director at Counterpoint Research, LG had 0.15 per cent market share in 2019 and 0.30 per cent in 2020.
"This increased share was one-time festive season sale in 2020 but otherwise, the company's share has been stagnant at 0.15 per cent (YoY). Their success at larger consumer appliances couldn't lift the sale of mobile devices," Pathak told IANS. LG was sandwiched between competitive entry to mid-tier offerings from Chinese brands on the one hand and Apple, Samsung, OnePlus in the premium segment on the other in the fierce India market.
"Being vertically integrated, it had access to some great technology and products, but go-to-market strategy and right portfolio is what seemed missing. LG's market share never recovered in India," Pathak stressed. This year, LG was scheduled to launch a smartphone with a rollable OLED display after it teased the product at the Consumer Electronics Show (CES) 2021. However, the company scrapped the plan. "For LG, the challenge, over a period of time, has been its inability to measure up to the competition, especially in terms of matching up to their value for money propositions, and strong messaging and marketing prowess," said Prabhu Ram, Head-Industry Intelligence Group (IIG), CMR.
