India is a country of many seasonalities: Soon Kwon, LG India

It’s the season of high-end smartphone launches and LG Electronics India, looking to find its feet in the lucrative segment, has brought in its flagship G2, with an entry price of Rs 41,500 for the 16GB version.

The Korean company, that trails compatriot Samsung here, feels a strong branding in consumer durable space will aid its penetration in the phone market, which is now dominated by Samsung and Apple on the top and by homegrown brands like Micromax, Karbonn and Lava at the bottom. The launch comes within days of Samsung launching the Note 3 and Sony getting in Xperia Z1.
TOI speaks to Soon Kwon, MD of LG India, to understand how he looks at competition and what he makes out of the economic slowdown. Excerpts:

You launch G2 at a time when competition is stiff and established players have introduced new devices?

This is one of the most awaited phones from LG. Regarding competition, I understand that it is not going to be an easy task to break into this market. But, we are confident of our prospects. It is all about how innovative phones you have, and how diligently you have worked at consumer insights.

But, it’s easier said than done. Your rivals have deep inroads in India and enjoy formidable market share?

I concede that many companies have a high market share. But, this is a very dynamic industry. Just go back in time and see who was king just three years back, and where that company is now (an apparent reference to Nokia). Thus fortunes change. It all depends on how creative you are, and how fast you innovate.

What is the contribution of mobile phones to LG India's overall business?

We expect the division to contribute around 7 per cent to our business this year, and this will go up to at least 15-20 per cent going forward.

How have been sales of consumer durables for LG?

Our major business divisions — like LCD TVs, appliances and air-conditioners —have been growing and overall we are up by about 10 per cent.

Does the economic slowdown worry you, and do measures like RBI ban on sales through EMI schemes concern you?

We still need clarity on RBI measure. Regarding the slowdown, I can only say that India is a very dynamic country. It is a country of many seasonalities — festive seasonality, weather seasonality, and then you have the elections happening next year. So, it is very hard to make a business forecast.