LG has high hopes for 3D TVs in Europe
Boosts ties with U.K's top satellite broadcaster
By Kim Yoo-chul
LEICESTER, England ― Amid the strong and steady push by leading television makers for three dimensional (3D) TVs, Korea's LG Electronics is hoping to further ride the wave especially in the United Kingdom via various campaigns.
Despite strong price resistance, the demand for 3D TV is steadily rising as television majors including Samsung Electronics and LG Electronics have rapidly begun big promotional campaigns to boost the market.
3D TV currently is a niche in global markets. But iSuppli, a U.S.-based market research firm, said global shipments for such sets this year will reach 4.2 million. The number is expected to triple to 12.9 million in 2011 and then more than double to 27.4 million in 2012.
LG Electronics, which trails Samsung Electronics in the global flat-screen television market, is aiming high to secure its bottom line in the U.K. ahead of its biggest Japanese rivals Sony and Panasonic.
It is expanding a partnership with BSkyB to business-to-consumer (B2C) related fields from business-to-business (B2B) ones. LG is even planning to sell its 3D televisions via Sky's sales networks.
LG has confirmed that it will be boosting tie-ups with BSkyB for 3D televisions, adding that the partnership will be a symbol for joint marketing.
"From October 1, Sky will begin airing its 3D channel in the United Kingdom and Ireland with live coverage of the Ryder Cup from Celtic Manor and launch promotions for LG's 3D TV range to its 2.9 million customers who already have a Sky+HD box and are therefore 3D-ready," said Choi Joon-hyuck, an LG Electronics spokesman, last week.
The announcement was embargoed to the South Korean media until Tuesday.
Choi said LG Electronics and the U.K.'s top satellite broadcaster will offer exclusive deals for upcoming and existing Sky customers, adding more details will be announced shortly.
The latest update for LG’s 3D-related strategy came after seeing an improvement of its penetration in the United Kingdom capitalizing on pubs.
By implementing its customized target-based marketing campaigns, LG is planning to increase the number of 3D TVs installed in public houses in the U.K. So far, there are some 125,000 nationwide, according to the company.
"Now, the time is ripe to launch more campaigns as LG's brand recognition has increased to 50 percent helped by the sponsorship of Premier League football team Fulham over the last three years," said Na Young-bae, the head of its U.K. affiliate, in an interview with The Korea Times, in London, last week.
"3D TV marketing for pubs has fully paid off especially as people really enjoy watching football games over a beer there," Na said.
The executive said more British consumers are getting familiar with learning new technologies.
LG Electronics is aiming for a 25 percent global share in 3D televisions in 2011, though Choi declined to unveil any internal sales targets.
Unlike LG, Samsung plans to sell 2 million 3D-embedded televisions this year, according to Samsung's TV chief Yoon Boo-keun.
To lead over Sony, Panasonic
LG Electronics is in a head-to-head battle with Sony for the No. 2 position in the global flat-screen television market, and plans to push this by selling more of its televisions through major electronics products outlets.
At a Currys Megastore located in Leicester, some 160 kilometers northwest of London, LG's flat-screen televisions are getting more attention, according to shop managers.
"We are selling some 400 flat-screen televisions on a daily basis, most of them from Samsung Electronics and LG Electronics. LG is quite well known in terms of brand royalty," said a sales manager named Tony.
Leading television suppliers are promoting their products more in Currys as the stores have recently emerged as favored selling outlets to British consumers prior to the debut of the U.S.-based BestBuy, said Moon Yoo-jeong, a senior marketer at LG Electronics' U.K. affiliate.
At the Currys in Leicester, LG takes up the biggest spaces among its rivals _ it was exhibiting 55-inch full LED-backlit 3D LCD televisions, while a string of other 3D models were being put on display.
"Younger customers favor LG's flat-screen televisions inspired by the sleek design, affordable prices and competitive technology," said another salesman.
He said Sony's 55-inch LCD televisions were being sold at a discount of $1,300 compared to those of LG Electronics and Samsung Electronics, however, it was struggling for a sales boost despite such a drastic price cut.
Currys was positive about the proliferation of 3D televisions as prices drop, while 3D-customized content is increasing.
"Consumers are still passive about 3D TVs due to the higher prices. But I can say the market will grow in the United Kingdom from next year. LG's target-based marketing capitalizing on football games is quite persuasive," the salesman added.
When asked for advice on effective marketing for the Korean manufacturers, he said they need to broadcast more advertisements to boost their customer base.
"Sony is still popular though not as much as in the past. LG and Samsung are getting attention from the younger generation. I think consumers are ready to pay a premium for televisions and digital devices manufactured by Koreans. The key point is how they organize strategies."