LG Pulling Out From Malaysia Market?
LG has been making headway in the smartphone world. Going up against all odd they managed to make impressive hardware that could compete with the likes of Samsung’s flagship the Galaxy S line. It is on the most part a feat not many can achieve and of course an impressive one. They have been on a roll as well in announcing some pretty exciting devices that is to come in the year 2015. Here is the issue though; they may not make it to the Malaysian shores.
The situation in Malaysia with LG now is not what any business person would call ideal. How come? The only available set of device that is currently available to consumers are the G3 and G3 Stylus. Both phones bring the total number of LG phones available in Malaysia to two devices. What’s worse is that it does not look like LG is making any progress with the sales and movement of the device locally as well. We are actually guessing that this is happening or that the LG G3 is not happening enough in Malaysia due to the lack of marketing done on the device itself. We do admit that we like the device, and we think that many others will like it too. But if no one knows it is available, who is going to buy it?
So is LG pulling out of the market? The simple answer would be no. But it is not as simple as that. LG’s current focus in the Malaysian market is the consumer goods market. What that means is that they are placing the sales and distribution of things like a fridge, microwave, and ovens at a higher priority than bringing in new smartphones to be sold to consumers in Malaysia. LG though have been established as one of the top contenders and brands in Malaysia when it comes to consumer goods; so why spend so much time and money in this segment? Although they have a strong position in Malaysia the consumer goods market is getting more and more competitive with the likes of Samsung in the same market category. Being a smaller manufacturer compared to Samsung LG has far less resources and this limitation of resources is a determining factor on which industry is LG going to focus in. Of course to defend itself in an already established market with a set of known demands is easier than trying to enter a new market that is already competitive in the first place, and thus the focus shifts to consumer goods.
Where this leaves LG Mobile in Malaysia though is not a good place. The LG G4 and G Flex 2 are remarkable phones that we are all excited about but the chances of this market seeing them in flesh looked bleak as confirmed by an LG Representative. Whether or not LG will pull out of Malaysia is a totally different question but even then they seem very unsure about continuing their efforts here. Of course we at techENT wishes that LG stays and will reconsider its position in Malaysia and finally push new hardware into this part of the world.
Sources: Soya Cincau