Chinese consumer electronics major Konka is planning to make a comeback to India, and is scouting for a strong local partner to leverage the latter's existing network. Konka, which leads the Chinese colour TV market with a share of 17-18 per cent, will initially focus on CTVs and mobile phones, its key strengths. "The Chinese are looking at the Beijing Olympics as the threshold for launching their brands globally, like the Koreans used the Seoul Olympics," says Indrajit Ghosh, Konka's representative in India.

There's been a growing realisation among Chinese consumer durable companies that they need to make a transition from being original equipment manufacturers (OEMs) to branding their products. India is the only market that is witnessing a double-digit growth in CTVs, a 30-40 per cent surge in mobile phones, and promises a great potential in other consumer durables, as penetration remains poor. This throws up a brilliant opportunity for new players to make a beginning here. Chinese appliances major Haier recently started its Indian innings, and Konka is readying for a relaunch. It has two options: join hands with regional players like Oscar, Beltek or Bestavision, who have lost ground and need new products to differentiate their offerings, something that Konka can offer. However, it fails to give it the pan-India reach it's looking for. The other option is to go with one of the national players like Videocon or Onida, who could leverage on Konka's strong R&D and get the latest technology off-the-shelf for LCD TVs or plasma TVs. But here, a conflict between the two large players is likely. The CEO of an Indian durables major summed up the sentiment: "They (Konka) are not very clear about what they want.

Why should I give my distribution channel for free."

Either way, it can't afford to be a fringe player in this game. In the past, many brands have failed in India, finding the competition too hot to handle. "It's a high stakes game. Either you play at full swing or you get knocked down. There's no case for gradual entry and consolidation," says the marketing head of a durables company. Konka would do well to rethink its entry strategy or it would be far from a happy entry (Konka means happiness in Chinese). And, it can't afford an unhappy one, the second time.