HS Bhatia, Managing Director, Daewoo India speaks about the South Korean brand’s goals and strategy for its second innings in India
There has been a rise in demand for all things Korean in recent years—K-Pop, K-Food, K-Beauty. However, India has been a thriving market for South Korean products for the last several decades with companies from South Korea having established a strong foothold here. According to Invest India data, the Republic of Korea is India’s 13th largest foreign direct investor, putting in $5.85 Billion in the country from April 2000 to Mar 2024.
Electronics and appliances have been one of the thriving sectors for Korean companies to operate in the market. Samsung and LG are leading examples. Another brand that operated in the market alongside these was Daewoo, which was in India from 1996-2005 selling TVs, air conditioners, refrigerators, washing machines and kitchen appliances. The brand pulled out of India after its South Korean parent went bankrupt.
The electronics division of Daewoo was then acquired by steelmaker POSCO Group, which has steel plans in Maharashtra at an investment of $1 billion. POSCO Daewoo seeks to pick up its Indian consumer durables and information technology (CDIT) story from where it had left and has re-entered the market in October through a strategic brand licensing partnership with an Indian partner Kelwon Electronics & Appliances Pvt Ltd.
In an exclusive interaction with Indiaretailing.com, HS Bhatia, Managing Director, Daewoo India shares the company’s re-entry strategy. Edited excerpts…
Tell us about the arrangement between Posco Daewoo and Kelwon Electronics & Appliances Pvt Ltd.
This collaboration combines Daewoo’s global expertise in consumer durables with Kelwon’s strong presence and infrastructure in India. We are partnering with Kelwon Electronics, leveraging their deep market understanding and distribution network to ensure our products reach consumers efficiently. Together, we are focusing on three key areas: Consumer durables, renewable energy, and electric vehicles. By combining advanced Korean technology with affordability, we aim to re-establish Daewoo as a leading brand in India, offering reliable and innovative products that resonate with Indian consumers.
What steps have you taken since you entered last year?
Since our entry in October 2023, we have focused on establishing a strong market presence by introducing a range of products including smart television sets, water purifiers, inverters, interactive flat panels, and automotive batteries. We have also been working on expanding our distribution network, training our sales teams, and building brand awareness through marketing campaigns. Additionally, we have laid the groundwork for local manufacturing and R&D facilities to ensure our products are tailored to Indian consumers’ needs.
Which products and how many stock-keeping units (SKUs) do you plan to launch in the short term?
Over the next three years, we plan to launch a comprehensive range of products, including purifiers, audio speakers, smart fans, air coolers, home automation systems, and a wide range of small home and kitchen appliances. We aim to introduce numerous SKUs across these new categories and our existing ones.
We also plan to expand our product portfolio to include a wider range of consumer durables, such as washing machines and refrigerators, in the near future. Our goal is to offer a comprehensive range of home appliances that cater to all aspects of modern living, ensuring that Daewoo becomes a household name in India once again.
How will you reintroduce the brand to Indian consumers?
We will reintroduce the Daewoo brand through a combination of targeted marketing campaigns, strategic partnerships with large retail chains, and the launch of exclusive stores and experience centres. By collaborating with well-established retail partners and leveraging their extensive networks, we aim to ensure that Daewoo products are widely available and accessible to consumers across India.
Tell us more about the physical outlets you are planning to open.
We plan to launch several exclusive Daewoo stores and experience centres across key cities in India, including Delhi, Mumbai, Bengaluru, and Hyderabad. These centres will allow consumers to experience our products firsthand and make informed purchase decisions. We are investing significantly in this initiative to ensure that our stores reflect the premium quality and innovation that Daewoo stands for. The exact number and locations will be determined based on market demand and strategic considerations.
The competition in the consumer durables space has intensified considerably since the brand exited the company. How do you plan to compete and gain market share?
Daewoo plans to stand out by offering unique value propositions that blend Korean technological innovations with affordability. We are focusing on market segmentation and introducing innovative products such as home automation systems, flat panel smart interactive LED televisions, alkaline water purifiers, and automotive batteries. Our commitment to quality, innovation, and competitive pricing will help us differentiate from competitors and gain market share.
Who will be your target audience and what will be your product positioning?
Our target group includes tech-savvy, quality-conscious consumers across various age groups who value advanced technology, reliability, and affordability. We position Daewoo as a brand that offers cutting-edge products at competitive prices, tailored to meet the specific needs of Indian households. Our focus is on delivering superior performance, convenience, and long-lasting durability.
What is your omnichannel strategy?
Our omnichannel strategy focuses on offering a unified shopping experience for consumers, whether they purchase online or in-store. By aligning our physical stores with our online platforms, we maintain consistency in product offerings, pricing, and customer service. We are also collaborating with major retail chains and e-commerce platforms to broaden our reach, providing consumers with various ways to engage with the Daewoo brand.
What is your five-year goal, and your strategic focus in the first three years?
Our 5-year goal is to make Daewoo a top brand in the Indian electronics market. In the first three years, our strategic focus will be on establishing a strong brand presence, expanding our product portfolio, and building a strong distribution network. We aim to capture a significant market share in the consumer durables and renewable energy sectors.
We are focused on innovation, providing quality products, and growing our market presence to make Daewoo a trusted choice for Indian consumers.
