LG Electronics Solidifying Leadership in N. America
By Kim Yoo-chul
Staff Reporter
Powered by innovative technology and design, South Korea’s leading home appliances maker LG Electronics is accelerating efforts to solidify its dominant position in the North American market.
The first half of this year saw the company’s total revenue in the U.S. jump 39 percent from the same period last year. Its strong performance with advanced technologies made the firm increase its brand awareness in the region as high as 75 percent.
Its top regional official is certain that annual sales in North America will top $10 billion by the end of this year.
``LG Electronics is well on its way to exceeding the $10 billion mark in regional revenue this year, driven by double-digit sales growth in its key product categories during the first six-months,’’ said Michael Ahn, president and chief executive of LG Electronics North America Headquarters.
He added the company’s strong emphasis on design and innovation are positioning LG as one of the fastest-growing premium brands in mobiles phones, digital appliances and consumer electronics in the region and the firm will continue to capitalize on key technologies in plasma, LCD panels, digital TV standards and mobile communications.
Brand Power
Despite fierce struggle at cornering the local 3G phone market, where it’s rival Samsung Electronics controls nearly 70 percent, LG saw the total sales of its 3G phones exceed two million in North America _ a first among South Korean 3G phone makers.
In a bid to bolster its U.S. presence, the South Korean phone maker unveiled a `New Chocolate Phone’ last month.
In addition to its advanced technology, the new multi-functional phone features a colorful touch keypad and is incredibly thin _ a mere 17mm. The phone additionally offers the functions of MOD and VOD with a separate 2-gigabyte mike.
Also its Tromm washer outpaced rival brand Kenmore, propelled by strong sales of high-end machines such as the Steam Tromm to become the No.1 less then four years after entering the U.S. market.
For the second quarter of the year, the washing machine captured 18.2 percent share of the market. Moreover, LG has secured an unprecedented 23 percent share of the U.S. market in terms of revenue.
LG attributed its rapid growth to innovative technology and design.
``LG won over American consumers with appealing colorful and stylish machines featuring a remote monitoring system, which tells the status of the laundry cycle from anywhere in the home,’’ the company said.
``We are expecting ripple effects such as increased sales of high-end products and an enhanced image as a premium brand due to the success of the Tromm,’’ Ahn said.
Front-load washers, considered to be the fastest growing category within home laundry systems, now represent over 30 percent of all residential washers and dryers shipped in the U.S. year-to-date, according to the Association of Home Appliance Manufacturers (AHAM).
In the LCD and PDP markets, in which the company fiercely competes with archival Samsung Electronics, LG is planning to achieve a 10 percent share within the year by selling two million panels.
The company places strong emphasis on strengthening its over 32-inch line in the LCD market, while 42, 50 and 60 inch lines are considered a winning card at increasing its stake in the PDP market.
Global demand for TVs is expected to reach some 220 million by 2011, up 20 percent from an estimated 193 million this year. LCD TVs will make up for around 47 percent of the global market next year. Market watchers say sliding plasma TV sales will add fuel to the buoyant LCD market as LCD TVs are attracting consumers.
The home appliance maker is ready to introduce a new ``Opus’’ LCD TV in September. ``Opus’’ stands for ``a work of art’’ in Korean.
``To solidify our leadership in the North American consumer electronics market, the company will launch a brand TV for the first time,’’ an LG official said.
LG’s good performances through big home appliances is expected to pave the way for the firm to get a bigger stake in the world’s largest home appliance market.