LG mobile phone business in China layoffs: struggling business in China

Shen Wen Fan served as president and CEO of LG Electronics in Greater China in early December, just after he took office, immediately usher in the first challenge: how to adjust in China struggling mobile phone business.
　　Recently, media news that LG Electronics mobile phone business in China has started in 26 offices, employees received a notice of outgoing. Allegedly layoffs mainly involved in management and sales positions, the addition to the north of Guangzhou and other first-tier cities retain more staff, and the remaining provinces, leaving only a single-digit personnel to maintain.
　　Say layoffs, LG is called "organizational structure due to the adjustment of market strategy optimization. LG Electronics yesterday in reply sent to the "First Financial Daily" said, the adjustment will include channel model optimization, and the localization of the global market star models, this will inevitably bring changes in human resources. But the specific implementation of the measures have yet to be confirmed publicly.
　　LG to explain the reason of the adjustment in a reply in the Chinese market, LG Electronics hopes to accelerate the smartphone strategy to optimize the organizational structure, in order to enhance operational efficiency and competitive advantage, the need to be more in line with the markets, channels and consumers.
　　This adjustment in the eyes of some channel partners, LG's not unexpected.
　　An industry source told reporters yesterday, southern China some stores sell LG mobile phones have already started a few months ago dismantling. "In the domain of LG's partners, but inside domain in stores, has been difficult to see the LG brand, some promoters and supervision has already been evacuated." According to its disclosure, the unexpired term of this Agreement, the original The some LG counter OPPO domestic brands has changed hands leased.
　　"LG earlier of the Distribution of smart machines, but support is not enough, the products and the funds are not forming a virtuous circle." Tianjin phone chain stores, Liu Wang (a pseudonym) told reporters that, as early as in the year before his jurisdiction store has stopped selling LG mobile phone, turned to other domestic brands.
　　The person in charge of the above phone chain stores scale manufacturers such as LG Electronics, a month should push the two new models, but the later LG phone product line is almost depleted, able to come up new products, old products have been cheapening . Unable to give funds platform subsidy, to cooperate with the country on behalf of the business is in exchange for faster.
　　And the latest data from Ai Media Consulting, the 2012Q3 China smart phone market sales reached 49.8 million, growth of 31.1%, a year-on-year growth of 154.9%. 2012Q3 Samsung sales share of 17.8%, ahead of the other competitors. LG proportion of only 1% hovering. In the U.S. market, LG won 17% of the market share.
　　Ai Media Consulting CEO Chang seems, compared with rival Samsung, LG brand in China packing less than the former; channels layout, bundled with the carrier is not close enough; At the same time, the low price of the smartphone market, homogenization competitive situation, the LG more difficult to adapt.