Though LeEco downsized its operations in India, the Chinese hardware maker has no plans on the massive Indian market anytime soon. As reported by Livemint, the company will now deploy investments in the TV business and will implement a fresh strategy to manage its operations.
Amid the cash crunch, LeEco COO Alex Li anticipates that the company’s TV business will grow faster than mobiles in India — similar tactics are being followed by Indian phone makers as well. Micromax has recently pumped a massive Rs 600 crore investment in the development of its consumer durables offerings.
The advent of smart TVs and rise of on-demand streaming platforms is suspected of creating an intense demand in the TV market in the coming months. Seemingly, India is seen as one of the largest electronics markets across the globe and hence is expected to catch up to the current trends. The present supply of Smart TVs in India is inefficient, as per the consumer demand. The company plans to solidify its existing customer base by tapping the potential present in the said sector.
Speaking on the scope for LeEco in India, Alex Li, group vice-president and India chief operating officer said,
We will not exit India but work out a smart strategy to manage operations in India. We will be cautious with our investments for now,We will focus on smart TVs only.
The company plans to set up a new R&D Facility in the IT development region coming up in Pali, Rajasthan. The land for this region has already been identified by the Rajasthan government somewhere in the Jodhpur-Pali region, and it now needs to submit project details for approval by mid-April.
The project named ‘Information Technology Investment Region (ITIR)’ occupies 40 sq. km of area and has been launched with the aim to attract FDI interest in the state. It helps create intellectual property (IP), thereby making the nation competent in developing cutting edge technologies, electronics and software products.
Sales for LeEco massively declined in the country post the demonetization exercise. Moreover, the unprecedented rate of growth led to the financial crisis being faced by LeEco. The rigorous effect of both internal and external factors, hence, led to the imminent collapse of LeEco’s South Asian operations.
With the focus on the Smart TVs, the company also plans to resume its partnership with Eros Now.The latter concluded its services for LeEco smartphone users recently due to some internal matter. However, Li confirmed that his meeting with Eros on Monday is where he will address all the concerns. Besides that, he further added,
Our content development plans have been scaled down now with only a small team operating from Mumbai. We will look to partner more now.
Apart from Smart TVs, LeEco proposes revenues through its online LeMall store via the sale of accessories. The company declined the arrival of electric cars in India for 2017 and moreover noted that the company will not open single-brand retail stores in the same year as well.
