LG Electronics sets up company-owned e-store in India, hopes to boost appliance sales

India’s largest home appliances maker, LG Electronics India has set up a company-owned online store front using the retail foreign direct investment (FDI) in automatic route for single brand companies and manufacturers.

The Korean-based firm believes that this move will help in expanding its sales further when Indian consumers are opting to buy products including television sets and refrigerators online due to the ongoing COVID-19 pandemic.

LG Electronics India business head (online and e-commerce) Mr Deepak Taneja said, “The company-owned e-store will focus on the premium-end products with an assortment of 150 models right now, but will eventually sell 60-70 per cent of its entire portfolio.”

“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 warehouse. Online sales for us have grown by 100 per cent by value in the last one year while it has been 30-35 per cent for the industry,” he said.

Mr Taneja added that there would be no preferred or exclusive offers for its e-store and prices will be at parity with retail. “However, over a period of time we will look at differentiated offerings such as membership offers which LG has in few global markets like the US,” he said.

The company will not impact the end-consumer pricing, including the price offered by sellers in online marketplaces like Amazon and Flipkart, and retail stores.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.