Samsung, LG Enjoy Brisk Sales in LA
By Kim Yoo-chul
Korea Times Correspondent
LOS ANGELES, California ― It is a contrasting scene. Most stores along ``K-Street'' are struggling ― but there's one exception: that of electronic gadget vendors.
At the heart of this small corner of bustle are two Korean electronics giants.
``I am receiving more inquiries from visitors about products by Samsung and LG products. The images of the Korean companies are good and getting better,'' Peter Park, who works at a Best Buy store in Los Angeles' Koreatown told The Korea Times last week.
``Samsung's larger-sized LCD TVs are selling well, despite their prices being higher than Sony's."
Best Buy officials said the portion of Samsung TVs among the best-selling brands reached 35 percent at the end of March, while LG Electronics products registered 8 percent.
The footprints of Korean firms are spreading as years-long efforts to strengthen ties with big sale outlets, supply-chain management and procurement systems begin to pay off.
Some say such impressive moves were largely due to aggressive marketing ― a common scheme by the industry's latecomers to boost brand recognition in a short space of time.
``I am aware of that criticism. But the key thing is that the North American market often sets trends for Europe, China and other big markets,'' Charlotte M. Suh, a consumer who was waiting in line to buy a new flat-screen TV, told the newspaper.
``I haven't decided yet which brand TV I should buy. But it should be either Samsung or LG. In terms of product quality and after-sales policies, it seems better to buy Korean brands,'' she added.
In the first quarter of 2009, Samsung relinquished its position as the first in sales of LCD TVs.
Although Samsung fell from its No. 1 spot after four straight quarters, overall it still performed strongly with a significant shipment increase, according to data from DisplaySearch.
In the previous year, Samsung captured the No. 1 spot in North America's digital TV market. LG ranked No. 5, according to research firm NPD.
In the mobile phone market, Korean manufacturers have penetrated even deeper in to North America.
``Samsung and LG phones are often good from the perspective of hardware ― they are durable and reliable. But now LG's Dare and Samsung's Instinct phones are bringing changes for the better to consumer perceptions about their software, such as design and functions,'' an employee who works at one of the Verizon Wireless outlets in Wilshire Boulevard said.
He said, ``The thing is a growing number of U.S. consumers have begun acknowledging the South Korean brands, even in Motorola's home-turf.''
Foreign brokerages said LG Electronics may achieve about 30-percent growth in handset sales for the second quarter of the year thanks to a stronger-than-expected performance in North America.
Samsung is the runner-up to Finland-based mobile giant Nokia, while LG Electronics is the world's No. 3 phone manufacturer. LG recently beat Motorola in terms of shipments.
``Samsung and LG could suffer temporary setbacks in North America. But that really doesn't matter for me. Numbers of general U.S. consumers here at least in Los Angeles now acknowledge their brands,'' 31-year-old company worker Benjamin Lee said, adding Samsung's new pitch LCD TV equipped with light emitting diodes (LED) backlight is still on the icy road.