LG Electronics entered the competitive cellular handset market last year, selling 160 000 units and grabbing 4% of the market, but it has its sights set higher for 2004, with a wider variety of eight mobile handsets.
"Our aim is to sell half a million handsets this year to establish LG clearly as the third largest cellphone supplier in the local market," says Herman Bezuidenhout, national sales manager for LG GSM sales.
"We are confident we can achieve this because of the brand equity LG has in the electronic appliances market, the positive brand experience by users, competitive pricing and leading technology."
Nokia leads the local handset market with 60% share, followed by Motorola with 20%. "But there is no clear third place," says Bezuidenhout. "This year we are aiming for an 11% market share to remove ourselves from the bun fight over a clear third place in market share."
Bezuidenhout says LG`s strategy in the next three years is to focus on the networks, which plan to consolidate the number of handset suppliers they support. LG aims to be on the smaller list of handset suppliers.
He also says LG plans to develop distribution channels beyond the three cellular operators with a view to finding markets in the rest of Africa, but handset purchases will be centralised in SA. "Over half the local sales will be exported into Africa by 2007."
LG`s mobile handset strategies are part of the company`s international aim to move from 10th position into the top three electronics manufacturers by 2010. "We believe in quality as well as solid research and development that enable us to be first to market with a wide range of technologies," says John Shaw, GM of marketing.
"According to Gallup International, LG is the most recognised brand in SA," Shaw told the LG Life`s Good dealer convention at Caesars Gauteng yesterday.
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