The FINANCIAL — Georgia is leading in the adoption of modern technology among the world’s developed countries. Despite the fact that Georgia belongs to the group of poorer countries; demand on expensive technology is growing.
Many famous brands are presented in our country. Their strategies this year are different. All major brands are focusing on the third generation mobile phone.
70-80% of teenagers in Georgia have a third generation mobile phone. Sales of third generation mobile phones have considerably increased. Major companies like LG and Nokia expect an increase of their sales by 30% for 2008.
“LG Electronics is continuing to enhance the global strength of the LG brand in Georgia and maximize profitable growth. In particular, LG Electronics will be focusing on achieving profitable and sustainable growth in mobile communications and digital display sectors in order to pursue its leadership in the IT industry. Gyu Hwan Son, Chief Finance Officer, LG, told The FINANCIAL.
According to Hwan Son, currently LG mobile phones are not very popular in Georgia. Though, by 2010 LG shares in the Georgian mobile market are expected to be 30%.
LG global sales of 2007 amounted to USD 44 billion. According to data of the last three years the company increased its sales by USD 14.4 billion.
”LG’s sales in 2007 in Georgia made up 30%, which is USD 45 million,” declared Hwan Son.
According to an investigation made by IDC, approximately 291 million mobile phones were sold in the first quarter of 2008 in the world. Compared to the mobile phone of last year, sales of mobile phones have increased by 14.3%. However this is less compared to the fourth quarter of 2007. During the last three months of 2007 330 million mobile phones were sold.
According to the data of the first quarter of 2008, Nokia is leading in the sale of mobile phones, Nokia holds 39% of the market, the company Samsung takes second place holding 15.9% of the market, Motorola takes third place holding 9.8%, LG takes fourth place with 8.4%, and Sony Ericsson fifth place with 7.6%.
As representatives of the technological networks noted, there is a big demand on the home cinema, personal computer and home technology in Europe. Technology of the third generation is most popular in the world’s developed countries, where Georgia is also leading. There is also a big cooperative and individual demand for computers.
According to Teona Megrelishvili, PR Manager of Factor Electronics, demand on Samsung technology is mainly for TV sets, washing machines, refrigerators and air-conditioners. Because of the good quality and good price demand on these four types of technology is almost equally high.
According to the sales of technology, Samsung holds approximately 5% on the Georgian market.
“Our plans are to increase market shares, to offer customers new types of services and production, to introduce innovations and to widen distribution and realization networks, Megrelishvili told The FINANCIAL.
“In 2007 annual turnover of Elit Electronics made GEL 203 million and we plan to increase the sales up to GEL 360 million in 2008,” said Eter Kokoladze, sales manager of Elit Electronics.
There are 49 Elit Electronics shops in Georgia, where a wide range of technology of famous brands is available to customers: Bosh, Samsung, Electronics, Gorenje, Vestel, Thermex, Vogel, Gaggenau, Motorola, Electro Lux, HTC, Clarion, Kenwood, Pioner, A 4 Tech, Transend, Defender, A Data, Toshiba, Apple, and Philips.
As Kokoladze noted, in terms of white appliances demand is for Siemens and Bosh mainly, whereas Samsung is distinguished for its video and audio technology, which is due to a combination of the good quality and reasonable prices of the mentioned brands.
Customers are offered maximally flexible and acceptable conditions in terms of down payment services in the shop network.
Lately the sales have been considerably increased based on the down payment service and made 40%.
Elit Electronics cooperates with all banks in regards to the providing of down payment services, which is quite a simplified process. You need only your identity card and the bank has to be ensured that you have some form of regular income.
The Mission of Elit Electronics is to contribute to the development of successful people and the country; to offer up-to-date technologies to each family and each person with variety and quality service.
“LG Electronics will continue to build on the success of its Black Label series, the premium handset brand featuring LG Chocolate and LG Shine. Another premium handset, the PRADA Phone by LG Electronics, is the world’s first complete touch screen phone. It was created through a partnership between LG Electronics and the Italian fashion house PRADA,” Michael Buzariashvili, Ameritech Financial Manager, told The FINANCIAL.
“Very soon it will be almost one year that Ameritech has been present on the Georgian market. During this period it could manage to be one of the most important companies on the market. Ameritech is the first to offer customers an unprecedented sale of up to 20%. This is a huge sale for electrical goods,” mentioned Mamuka Abulasze, Financial Manager of Ameritech.
According to Abuladze, Ameritech offers a wide spectrum of electronic and home technology in Georgia. New world leading brands like: LG, JVC, Panasonic, Sony, Toshiba, Hitachi, Phillips, Electrolux, Pioneer, Bosch, Siemens, Ariston are available at Ameritech. From these brands the biggest demand is on LG, which has quite a wide range of items on offer.
Ameritech has quite possibly the largest portfolio of corporative customers, the number of which, like the number of customers purchasing the products via the hire-purchase service with TBC Bank, is constantly increasing.
The products of various brands offered in Ameritech are also distinguished for their innovations. LG for its Health care collection, which includes refrigerators, washing machines, air conditioners, vacuum cleaners, air fresheners and microwave ovens.
As Gyu Hwan Son, Chief Finance Officer, LG, noted, “LG, a large South Korean conglomerate, which produces electronics, mobile phones, and petrochemical products, plans to occupy 30% of the Georgian market by 2010.”
LG is comprised of four business divisions: Mobile Communications, Digital Appliance, Digital Display, and Digital Media and had global sales of USD 38.5 billion in 2006.
LG is focusing on the technology of the third generation and plans to compete with Nokia and other brands in the field.
The very first shop of trade network Megatechnique was opened in 1997 and was the official representative of Korean company Daewoo in Georgia. After three years of operation Megatechnique started widening its network. Megatechnique introduced these brands on the Georgian market: JVC, LG, Samsung, Sharp, Toshiba, Hitachi, Panasonic, Philips, JVS, Sony.
In 2007 Megatechnique became the official distributor of Sony and Electrolux in Georgia.
“According to the sales of technology we hold 5% on the Georgian market,” said Lasha Khutsishvili, Deputy Director of Megatechnique.
“Trust, many years of experience and high quality service constantly increase the number of corporative customers of Megatechnique. Our corporative customers are banks, ministries and various large organizations. Very high demand in our shops is on Hitachi, JVS, LG, Toshiba and Sony,” Deputy Director of Megatechnique, told The FINANCIAL.
Megatechnique is working on the down payment service and cooperates with almost all of the banks in Georgia. 40% of its sales are gained from down payment.
“There is a big demand on Sony’s liquid crystal TV sets, video cameras, digital photo cameras and laptops. According to the sales of technology we hold 25-30% on the Georgian market. We plan to open new Sony centres in various regions of Georgia including Poti, Gori, Kutaisi,” Dima Agekian, Sony Manager in Georgia, told The FINANCIAL.
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