LG Electronics has laid out aggressive retail initiatives for its LG MyPC in Mumbai and Thane region. It has appointed 30 Micro retail partners (MRP) for these two regions. These appointments are apart from the over 150 active trade partners LG has under the three Regional Distributors. They are Roop Technologies, SES Technologies and Visualan for LG MyPC.

While some of the trade partners have expressed resentment over the appointment of MRPs, Sanjoy Bhattacharya, Sales & Marketing, Zonal Manager - West, PC & Peripherals, justified that the company has given a much better business outline for them too. According to him, trade partners under the regional distributors should concentrate on the commercial deals than on individual end-users in the home segment. "We need their support to promote our LG MyPC range in corporates, schools and government segments," he said.

According to Sanjoy, Mumbai also has a huge consumer market where 30% to 40% of the MyPCs sold are from walk-ins. The appointment of Micro Retail Partner is a step towards encouraging retail sales of LG MyPC. "The PC in its new form is more like a consumer product than a technology product. Retail outlets are the best channel for selling a consumer product. Earlier they were surviving on transaction margins, now they will get incentives," he said. 

However, MRPs are allowed to sell only a maximum of 30 PCs in a month. "They are welcome to buy from the trade partners or the regional distributors if they want to cross this limit or indulge in corporate or large deals," he added. Unlike the regional distributors or trade partners who get goods on credit, MRPs will have to deal in cash.

MRPs will be reviewed constantly and the best retailer would be rewarded with prize like LG air-conditioner. Over a period of time, the best performing partners will be converted in to LG Cyber Partner (LCP), who dealing exclusively in LG MyPC.

Apart from appointing these retailers as MRPs, LG has made it mandatory for them to provide service support to customers. Currently, 95% of the appointed partners have already equipped themselves to become SSD (Sales and Service Dealers). This would mean they will be required to employ at least one engineer to service the customers under warranty.

Meanwhile, Sanjoy also informed that it would be constantly surveying its customers who purchased goods from the MRPs to analyze their buying habits. "This will help us in deciding the proportion of investment in promotions for various channels," he added.

NELSON JOHNY
MUMBAI

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