Why LG's Smartphone Segment Failed in India?

 

LG recently announced that they are winding up their smartphone industry in India. There are many reasons why they didn’t get success in the Indian market though they brought some fantastic devices. LG faced losses of INR 33,000crore ($4.4 Billion ) in the Indian Market. Reasons are mentioned below

1. Brand Value-

LG was failed in creating its brand value in India. The other new companies like POCO, Infinix, IQOO Micromax, etc, had created more brand value than LG in recent times. Their devices are sold in the count of thousands and many times in millions. LG failed to do so. Very few considered buying LG smartphones over any other brand.

2. Advertisement:

While other brands focus on advertisement on large scale, LG didn’t make attractive advertisements. Apart from the last few months, there was very little advertisement by LG on any social platform. Advertisement is very important to grow such a huge business in this competitive market. For few months LG was great at bringing out attractive advertisements but it was too late for it to survive in this market.

3. Pricing:

LG was not good at keeping the price of its smartphones, while other brands focus on keeping their device’s price aggressive, LG does opposite in starting and after few weeks when they start realizing that this price doesn’t work, they drop the price of the device very low which also creates dissatisfaction among the one who brought when its price was high. They just not decrease INR 1,000 or INR 2,000, they decrease the price by INR 10,000 or even more. It makes a huge difference when the price of commodity changes, its value, demand, and other factors about it change. This mistake was not once carried out by them, they do this mistake again and again with mostly all of their devices. Therefore they were not able to hold their customers, which was a huge mistake by a firm and repeating the same mistakes which affect your company will surely lead you to losses.

4. Consistency-

LG was never consistent in launching its product. Sometimes they brought in different price range and sometimes they brought in just opposite range, they were also trying to do lots of experiments in a shorter period of time. Being regular and consistent is very important in conducting this type of huge business and it becomes more important when the competitors are doing very well.

 

Not only LG there are many more companies like this, for example: Nokia, HTC, and Sony (Only talking about their smartphone segment) who are performing the same activities as LG and may have to face a lot of problems in coming future. The best way to learn from somebody else is to learn from their mistakes and do not repeat the same.

Although there were many mistakes by LG through which they had to leave this industry, but the thing I liked the most is that they promised to give the ANDROID and security updates to their current users up to 3 years which was a great step to take care of customers. I personally wish them the brightest journey ahead and hope that they do something fantastic incoming future.

 

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