LG Improves Customer Service with the Help of Channel Partners

08.08.2012

Prakash has seen LG grow from a few hundred crores in revenue to Rs 16,000 crore in 2010-2011. Today, its products are among one of the most-sought after in the market.

But operating a retail electronics business out of 1,000 authorized service centers with over 700 trade partners, over 12,000 sub-dealers and more than 450 exclusive LG brand shops, and various multi-brand outlets is no walk in the park.

"About 400 of our trade partners are exclusive LG showrooms (known as Brand Shoppes) and the rest are distributors. Together they constitute over 80 percent of our turnover," says Prakash.

It was this major chunk of its sales arm that worried Prakash. "We were efficiently capturing secondary sales (trade partner). But, were clueless about tertiary sales--the end customer. In terms of stock, we had end-to-end visibility of 'sell-through' data but not 'sell out' data," says Prakash.

This was affecting their outreach to the market. Year after year, says Prakash, LG was unaware of how many units of which model were sold to which end customer and where.