LG ELECTRONICS ROLE IN CONSUMER FINANCING

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July 26 - Aug 01, 2004
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The sale on installment basis is not a new way of selling in Pakistan as this mode was started by unorganized sector many years ago. The ultimate aim of this selling mode was to provide costly electronics products to the general masses that were not in a position to purchase the expensive and latest electronic items in cash.

The unorganized sector consisted of various dealers in their individual capacity financed a common man and earned a profit of around 50% to 60% on retail price. Due to non-availability of any organized sector in the ring the common man was forced to avail these schemes.

Keeping in view the economic condition of Pakistan, we realized and approached the government to instruct commercial banks to come forward, who were restricted by State Bank of Pakistan to indulge them in consumer durable financing. The government realized and took the bold step by allowing commercial banks to finance the general masses for the purchase of consumer durables.

National Bank of Pakistan was the first bank that took initiative with us for the start of this scheme and first ever scheme in the name of " GHAR GHAR TELEVISION SCHEME" was announced in October 2002.

With the start of consumer financing scheme by NBP, the doors opened for other bank and brands, which also initiated and came forward with different terms and conditions.

New Allied Electronics Industries (Pvt.) Limited distributor of LG Electronics for Electronics products is always known as the most aggressive marketing company, who has always introduced innovative schemes. The same enthusiasm compelled us to convince other banks to come forward and different schemes were started with other banks like:

 

 

1. HABIB BANK LIMITED
2. PRIME COMMERCIAL BANK LIMITED
3. ASKARI COMMERCIAL BANK LIMITED
4. N.D.L.C.
5. KASB BANK
6. BANK OF PUNJAB
7. SAUDI PAK LEASING CO.
8. PAK LIBYA HOLDING CO.

New Allied Electronics Industries (Pvt.) Ltd is not only the pioneer in starting consumer financing but also initiated schemes with many banks on the following salient features.

1. 0% mark -up
2. 0% down - payment
3. 0% processing charges
4. Actual documentation.
5. Free home delivery

With the collaboration of HBL, an ever competitive scheme on the occasion of 14th August, 2003 in the name of "AZADI SHOPPING GALA" was started with 0% mark up for 3 years.

These were the aggressive steps, which rated LG as No. 1 in consumer financing scheme through banks, where LG shared a market of more than 60% as compared to all other brands.