LG sees stronger dehumidifier sales

A model poses with LG Electronics' brand-new dehumidifier at one of the company’s local outlets in Seoul, Tuesday. / Courtesy of LG Electronics

By Kim Yoo-chul

LG Electronics is solidifying its position as a dominant player in the dehumidifier market both at home and abroad.

On Tuesday, it released new Whisen-branded dehumidifiers with storage capacities of 15 and 17 liters.

LG said the products have a sleek curved design and feature light-emitting diode (LED) displays. Retail prices were set at 540,000 won for the 15-liter model and 560,000 won for 17-liter model.

Its dehumidifiers have been receiving a warm response from consumers for their advanced technology.

Sales of the company’s dehumidifiers doubled this year from a year earlier.

LG has identified the product as one of its next earnings generators in its appliances business.

The company was the first to sell 10 million dehumidifiers globally since it started producing them 28 years ago.

LG dehumidifiers have been the highest-selling in the European retail market for seven straight years, from 2007 to 2013, according to the latest study by U.K.-based research firm EuroMonitor.

"The outlook for dehumidifiers looks bright in Korea as we expect demand here this year to reach over 2.5 million from 1.3 million,” a spokesman said. “The total market is estimated at some 800 billion won. LG is better positioned to beat its rivals in that segment."

The release of new dehumidifiers comes at a time when LG Electronics is expanding its white-goods lineup based on the growing awareness of its home appliances that is helping the company see its margins grow steadily.

LG officials said its appliances division is continuing to perform well, covering for some losses from other divisions. Margins are improving thanks to cost-cutting and strong premium product sales in Korea.

"Competition in the United States and emerging markets caused a sales decline overseas, but we expect earnings to improve throughout the year as developed-market demand improves, which should bode well amid ongoing premium-mix growth," said Bernstein Research's senior analyst Mark. C. Newman in a recent report to clients.

Newman said that strength can be attributed to strong cost control and growing contributions from lucrative appliances sales for commercial use.

“We are encouraged by strong sales in developed markets and South America, and expect profitability to grow further," he said.

The company plans to unveil its updates in home appliances during September's IFA trade fair in Berlin, Germany, which will run from September 5 to 10.