LG,Samsung & Panasonic see robust B2B growth

The business-to-business segment of consumer electronics majors is growing.

The business-to-business (B2B) segment of consumer electronics majors like Samsung,LG and Panasonic is growing more compared to their business-to-consumer (B2C) segment on the back of high demand in the B2B market. While players like Samsung are expecting a two-fold rise in their B2B business,LG is expecting a 30-35% growth,which is higher than the B2C segment which stands at 25%.

The total size of B2B solutions for integrated display market is around Rs 2,500 crore which is growing at 20-25% annually.

Soon Kwon,managing director,LG Electronics India,said,We expect the B2B business to have a higher growth potential as compared to B2C and are expecting 30-35% growth rate as compared to 25 % of consumer electronics items. We are targeting a turnover of Rs 1,000 crore and market share of 25% by the end of 2014 in this segment.

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Kwon further said,Considering the high demand in the B2B segment,LG will also be developing customer base for many different verticals including education for which it is in talks with the education ministry,hospitality,finance and governance. For this,the company has also roped in some of the prestigious clients such as ITC,Marriott and Cafe Coffee Day.

Samsung is targeting sales of $100 million (around Rs 455 crore) which is two-and-half fold jump from last year from its B2B segment in 2011. Samsung India deputy managing director Ravinder Zutshi said,The company’s total (B2B) sales in the IT and mobile division that includes printers,mobiles and displays stood at Rs 173 crore last year. We are also focusing on the education sector this year and are expecting 25% of the total sales target to come from the segment.

Toru Hasegawa,managing director,corporate planning and system sales division (SSD),Panasonic,said that the system sales division (B2B division of consumer electronics) has been growing rapidly,contributing 20% to the total company turnover. The year-on-year average growth rate for Panasonic SSD has been 65%, he said.