Those people contemplating to buy consumer electronic goods – specific to LG, I have some bad news to share. Come November 1 and the India division of LG Electronics will hike the prices of most of its consumer goods.
Amitabh Tiwari, the Indian head for LG India cited the hike was due to the sudden rupee depreciation against the dollar. The previous production cost was based on the average dollar cost of Rs. 43 and it was impossible to absorb it further added Tiwari.
These are some of the product categories that will be affected.
CTV – up by 3.5 percent
Washing Machines and Refrigerators – up by 4 percent
LCD TVs – No hike. LG was thinking to drop the prices by 7 percent but will now offset the price benefit with rupee depreciation.
The percent change seems very nominal but if LG’s counterparts could sell their wares at the same prices as before, LG has a chance to lose some market share considering most buyers are price sensitive.
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