By Kim Tong-hyung
LAS VEGAS ― LG Electronics, which competes with the likes of Whirlpool and Eletrolux for global supremacy in home appliances, aims to be the industry’s undisputed kingpin by 2014.
And to achieve that goal, the Koreans are hoping to get a boost from their commitment to ``smart-home’’ technology, which allows people to interact with their household gadgets and control them via their mobile phones.
LG in past years emerged as a global leader in refrigerators and washing machines, and expects to get solid returns from its investment in new businesses like built-in appliances and water-management technology, according to Lee Young-ha, the head of the company’s home appliance division.
Getting early out of the gate in smart appliances will enable the company to leverage its strengths across a broader range of products and services, Lee said. The company is targeting $20 billion in annual revenue by 2014.
``We look at `smart’ appliances as a natural course of evolution, rather than as something limited to the high-end market. The transition is a must and we need to find a way to provide a smooth experience to consumers without forcing them to pay too much extra,’’ Lee said in a meeting with Korean journalists on the sidelines of the International Consumer Electronics Show (CES) in Las Vegas, which ended Sunday (local time).
``We are one of the few companies that could provide more than just the gadgets but the total solutions that link the appliances with home network systems. The possibilities are immense and our smart-grid-readiness could provide us a distinct advantage in markets like the United States, which is showing more urgency than others in innovating energy management.’’
LG showed off its updated lineup of THINQ series of smart appliances at the CES. The technology is dependent on the presence of smart grids, which deliver electricity from suppliers to consumers using digital technology, enabling devices to communicate with utility firms to save energy, reduce household spending and enhance reliability.
LG’s washers designed under the THINQ concept automatically do the laundry in the most cost-effective time, the company claims, while refrigerators adjust to save energy costs at peak times.
The Internet connectivity of the gadgets enables them to interact with users, who can also download software and applications on them. The self-diagnosis system of the appliances alerts users and local LG technicians of any functional problems.
LG sees a potential business goldmine in wastewater treatment technologies and services, and has been increasing its research and development (R&D) efforts. The company is also marketing its ``green-membrane bio reactor” (G-MBR) technology, which employs ultra-thin membrane modules that allow bioreactors to be built smaller. G-MBR removes almost twice as much phosphorous than conventional bioreactors, making them more effective in protecting lakes, ponds and other bodies of water, company officials said.
LG also aims to strengthen its built-in appliances business in the North American and Europe markets, which would be crucial for improving market shares in ovens, dishwashers and refrigerators. The company recently inked a partnership with American built-in appliance firm, Viking, to develop products that are more attentive to the tastes of local consumers, Lee said. LG expects to generate 1 trillion won (about $890 million) from its built-in appliance business by 2015.
``Expanding our shares in built-in appliances will cement our reputation as a premium brand. Aside of advanced markets, emerging markets like Brazil and African nations are also targets,’’ Lee said.
LG currently runs 11 manufacturing factors overseas that produce 13 types of home appliance products, which gives the company more freedom in manufacturing products tailored for local markets, such as low-power refrigerators for African countries, Lee said.