By Kim Yoo-chul
It appears that the nation’s two electronics giants ― Samsung and LG ― are renewing a war in the refrigerator market because they both have rolled out new models with larger storage capacities.
LG introduced its latest refrigerator the DIOS V9500 with a 950-liter storage capacity Monday to solidify its leadership in the market, a month after Samsung unveiled a 1,000-liter capacity refrigerator at this year’s Consumer Electronics Show in the United States in January.
“LG Electronics can introduce larger-capacity refrigerators but only if consumers need them,” Cho Sung-jin, president of LG Electronics’ home appliances division, said in a news conference for a new LG DIOS refrigerator at the company’s headquarters in Yeouido, Monday.
“According to our own analysis, a refrigerator with a 950-liter storage capacity is ideal for consumers. It’s not desirable that we can see refrigerators with more than that storage capacity by neglecting such consumer needs. But if consumers want, LG can manufacture a freezer with a 1,500-liter storage capacity,” said Park Yeong-il, head of the company’s refrigerator division during the conference.
The 950-liter storage capacity is the company’s biggest since the 900-liter refrigerator it launched in August 2012.
Samsung surpasses LG in almost all business areas except home appliances.
Samsung Electronics co-CEO Yoon Boo-keun is now focusing on growing the company’s home appliances business, which is weak compared to its chip, display, TV and smartphone businesses.
“As Samsung is proud to be a leader in smartphones and TVs, LG Electronics can’t afford to lose its leadership, at least in home appliances,” said an official at LG by telephone.
Last year, Samsung filed a 50 billion won ($48 million) lawsuit against LG at the Seoul Central District Court, claiming that the latter’s advertising campaigns tainted the former’s brand value and reputation.
In addition, Samsung posted a YouTube video titled the “Inconvenient Truth about Refrigerator Capacity,” which compared the size of one of its own refrigerators with that by LG. Samsung uploaded the video twice ― first in August and then in September 2013.
The YouTube video stated Samsung’s 900-liter refrigerator can store more products than LG’s 910-liter one. LG claimed that Samsung twisted the facts and sought 10 billion won in compensation from Samsung.
The suit ended thanks to mediation by the local court.
Nevertheless, the competition is getting fiercer because both consider home appliance as their next growth engines after previously focusing on smartphones and televisions.
LG president Cho said the company is still on track in its plan to become the world’s biggest home appliances manufacturer by 2015. Samsung has the same goal, which may mean that the two firms will enter legal battles once again.
Some market observers, however, believe litigation can be a good marketing tool for boosting corporate awareness.
LG’s outlook for large-sized fridges in Korea and developed markets remains positive, as can be gleaned from its aggressive promotional campaigns.
“Demand for large-sized refrigerators remains healthy in the United States and Europe. While consumers in Korea seemingly don’t care about larger-capacity refrigerators, consumers in the United States and Europe do, and that’s why Samsung Electronics is rolling out new fridges that feature expanded capacity,” said another official at Samsung Electronics by telephone.