LeEco clarifies 'wind-up mode' rumors; says launches lined up

Chinese conglomerate LeEco on Friday denied all rumors of the company winding up its presence from the Indian market with a clarification statement, which said that the company is in view of future plans lined up for India, and is not 'in wind-up mode.'

"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," it said in the company note.

"India is one of the most strategic markets for LeEco and hence the company does not have any exit plan. In the past year, LeEco India has gained market recognition and the initial stage of market seeding has been successful," it added.

However, it added that 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.

"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," it said amid reports that the superphone manufacturer has fired almost 85 percent of its employees in India and may be looking to exit the country.

To recall, LeEco had entered the Indian market in January last year, via the online-only route, and entered the offline market in June, before proceeding to further expand its retail partnerships.