LAVA Electronics Explores Indian Market Entry Through Franchise Model
Sweden-based electronics manufacturer LAVA Electronics is engaging in discussions with prominent Indian real estate developers, including Ansal API, Omaxe, and Parsvnath, to explore potential avenues for entering the Indian market via a franchisee partnership. The company, specializing in LCD televisions, derives 60% of its revenue from the business-to-business (B2B) segment and aims to supply its products to major hotel chains across the country. LAVA Electronics achieved a turnover of €60 million in the previous year. Over the recent weekend, executives from LAVA met with representatives from these real estate companies to discuss potential collaborations.
Targeting a Q3 2009 Launch
LAVA Electronics’ Managing Director, Christian Svantesson, stated, “We are looking for a suitable franchise partner and aim to enter India by the third quarter of 2009.”
Mr. Svantesson elaborated on the entry strategy. He indicated that while they plan to establish exclusive retail outlets to serve consumers directly, their primary focus will remain on five-star hotels. He further emphasized their brand positioning, adding, “We want to position the company as a high-end brand in India.”
Replicating the Swedish Model in India
LAVA Electronics operates an assembly facility in Southern Sweden. The company imports television cabinets, panels, and other hardware components from Germany. Meanwhile, all software programming and product design activities are conducted in-house at their Swedish unit. They are looking to implement a comparable business model in India. Initially, LAVA plans to import and sell its products in India. Domestic assembly operations will commence after the brand establishes a robust presence among Indian consumers and businesses, Mr. Svantesson explained.
Global Expansion and Future Projections
LAVA Electronics sold 50,000 LCD televisions globally last year and has set a target of 70,000 units for the current year. The firm's current operations span across various international markets, including Hong Kong, Australia, Spain, the United Kingdom, Italy, France, and the United States.