LG aims 'top 3' in N. America
Cho Seong-jin, head of LG Electronics’ home appliance and air-conditioner division, speaks during a news conference at the Regent Hotel on the sidelines of this year’s IFA technology exhibition in Berlin, Germany. / Courtesy of LG Electronics
First built-in appliance brand will make European debut next year
By Kim Yoo-chul
BERLIN, Germany ― A senior LG Electronics executive said the consumer electronics manufacturer aims to become one of the top three players in high-end built-in appliances in the North American market by 2017.
“Betting on built-in products, LG Electronics is confident in becoming one of the top three players in the area of premium home appliances by 2017 in the North American market,” Cho Seong-jin, head of LG’s home appliance and air conditioner business division, said at a news conference on the sidelines of this year’s IFA tech fair here last week.
The executive said LG Electronics plans to release its first built-in appliance brand ― LG Studio ― early next year for consumers in Europe. The brand was launched in the United States in 2013.
In the United States, sales of its built-in kitchens doubled from the previous year, the company said.
“Built-in kitchens account for 30 percent of the total demand for consumer electronics. In the past, prices for built-in kitchen appliances were expensive. But the market is growing thanks to drops in prices. Built-in kitchens are no longer prohibitive,” said the executive.
Cho said more leading appliance manufacturers are selling built-in models in major European markets.
“We are seeing many brands selling built-in appliances, and families with average budgets can afford to equip their entire kitchens with built-ins,” he said.
Built-in models put the spotlight on design and function, which LG Electronics is proud of.
In keeping with that strategy, the executive said LG Studio-branded kitchens will be introduced in Russia, followed by countries in Eastern Europe in October and Western Europe next year.
“As LG Electronics’ home appliances share in Russia and Eastern Europe was more than 40 percent, the company chose those markets as the initial launch pads before expanding our presence in rest of Europe,” Cho told reporters, adding Western Europe was difficult to penetrate as the market is dominated by long-time leaders such as Miele.
“When you approach Western Europe, you need to be much more deliberate,” according to Cho.
Cho flew to Russia with LG Electronics Koo Bon-joon to urge its sellers there to promote built-in kitchen products. Bon-joon, LG Group Chairman Koo Bon-moo’s younger brother, arrived at the German capital for the fair using his private jet, Monday.
LG Electronics said its new drum washer, which features energy consumption enhancements, will be released in the latter half for consumers in Europe. It adopted new technology in the upcoming, which allows the device to maintain a certain temperature
LG used the 2015 IFA fair to highlight its prowess in home appliances and to send messages that it’s ready to meet the Internet of Things (IoT) trend by releasing products that can be activated within the AllJoyn platform ― the company is one of the members in the 180-company IoT alliance.