There have been reports in some sections of the media about LeEco downsizing and eventually planning to exit India as a market. We reached out to LeEco and they have issued a clear statement about their position in India and plans going forward
Here we quote the LeEco statement verbatim
India is one the most strategic markets for LeEco and hence there isn’t any exit plan. In the past one year, LeEco India has gained market recognition and the initial stage of market seeding has been successful. Now LeEco India has upgraded its strategy from fast market expansion to healthy and sustainable growth, which is the normal renewal of business strategy and execution.
The company’s resolve and determination to realize the true potential of the company’s operations here remains steadfast. To improve operation efficiency and to develop in a sustainable way, LeEco India has optimized its organization, to emerge as a more flexible and efficient operation to cope with the tough competitive market scenario in India. The report that has appeared overlooks the context resulting in distorted facts.
The company wishes to reiterate that in India it continues to operate with a very experienced team comprising senior team leaders and business heads. The resource head count in India is well aligned to the scale of operations envisioned and in line with industry benchmarks. Moreover, LeEco India has a robust R&D team working for India as well as LeEco globally, as the company values the R&D function, as it is integral to long-term business.
Contrary to reports in certain sections of the media, LeEco also has a healthy product pipeline for India this year. In fact, the company is gearing up for the launch of its next generation TV scheduled the coming week. Premium models of smartphones too are to follow. LeEco television and smartphone business continues in India and has gained significant market recognition. All this certainly does not signal a company in wind-up mode.
Further, to support the new upcoming products, LeEco will also invest in marketing initiatives in India which will be in tandem with the sales objectives. The selection of marketing tools and tactics will also be guided towards making a sharp, well defined and targeted appeal to our core consumer groups. The company’s recent moves were well thought out and planned as part of a longer-term strategy for the Indian market, and not triggered by the purported slump in sales due to demonetization.
There has undoubtedly been some misrepresentation and misunderstanding of LeEco’s business leading to ill- conceived messages being reported, which regretfully has caused considerable damage to the brand. The company hopes that wiser counsel will prevail and LeEco’s interest is well protected. The Indian operations will undoubtedly adopt a laser-sharp focus on overall organizational efficiency, capacity-building and talent nurturing while remaining unwaveringly committed to maintaining a sustainable and profitable business model.