LG Electronics’
Digital Appliance Company seized the "Global Top 3"
position in 2004, and aims to become the "Global Top 1"
in 2007. This division has captured the No. 1 position in the
Korean domestic market, and is revolutionizing Korean home appliance
culture with its premium products.
The Digital Appliance Company utilized the 1997 Korean foreign
exchange crisis as an opportunity to successfully pursue export-oriented
strategies. Buoyed by its achievements, the Digital Appliance
Company is emerging as a global company.
The Digital Appliance Companys implementation of global management
policies, including diversification of worldwide production
bases and localization of overseas subsidiaries, enabled LG
Electronics to become a national brand of Russia and a market
leader in various countries.
CEO
Executive Vice President
Lee Young-ha
Business Domains and Major Products
With a
focus on premium home appliances, the Digital Appliance Company
is capturing global markets. Because of unique technologies
and premium designs that reflect specific national cultures
and lifestyles, LG Electronics brand is recognized as a premium
brand by consumers in large distribution stores worldwide.
With the dawn of the ubiquitous system era, the Digital Appliance
Company is developing home networking systems that connect various
home appliances. These products were released in some 20 countries
worldwide, where home networking systems appeal to consumers
for use in new apartments.
[Major
Products]
Air
conditioners, air cleaners, refrigerators, washing machines,
vacuum cleaners, ovens, microwave ovens, dishwashers, compressors,
motors, and magnetrons
Air
Conditioners
LG Electronics
created a hit product by developing an air
conditioner, called the 2-in-1 Plus, in which
two air conditioners are installed in one
exterior unit. The company maintained the
No. 1 position in the world for five consecutive
years by releasing a framed Art Cool air conditioner
which resembled art work, a home theater speaker-like
EVE air conditioner with premium designs,
and various other air conditioning products.
LG Electronics is also striving to become
the global leader in the commercial air conditioner
category, with its system air conditioner,
the Multi-V, designed for use in apartments,
high-story buildings, etc.
Washing
Machines
LG Electronics
caused a stir in the domestic premium home
appliance market with the release of its front-loading
washing machine, the TROMM. The TROMM followed
the Tongdori (washing drum rotational) washing
machine, and allowed LG Electronics to seize
the leading position in the domestic washing
machine market. In 2005, LG Electronics is
generating new waves in the washing machine
market with its Steam TROMM washing machine.
With its continual release of upgraded dishwashers
and clothes dryers, LG Electronics is shaping
home appliance culture.
Refrigerators
By using
linear compressors, LG Electronics produces
world-class refrigerators that are both powerful
and quiet. LG Electronics is marketing various
types of refrigerators specifically designed
for unique national cultures. In Europe, LG
Electronics is selling French DIOS refrigerators
with a freezing chamber located in the lower
compartment. It is also selling date palm
refrigerators in the Middle East.
Cooking
Appliances
LG Electronics’
microwave oven designs are based on worldwide
market analysis and surveys, and reflect regionally-unique
designs and menus. These distinctive products
have enabled LG Electronics to solidify its
leadership in the global microwave oven market.
LG Electronics is also leading the premium
cooking appliance market with its new-concept
cooking appliance, the SolarDOM, which uses
light and heat to cook.
Vacuum Cleaners
After sweeping
the domestic vacuum cleaner market with its
Donggeori vacuum cleaner, LG Electronics is
now capturing the global market with its bagless
cyclone vacuum cleaner, the Cyking. LG Electronics’vacuum
cleaners have already been a national brand
in Russia for two consecutive years.
System Kitchen Appliances
In the
domestic premium kitchen appliance market
where imported kitchen appliances prevail,
LG Electronics now offers its system kitchen
appliance line, Bellagio. Belllagio consists
of a two-door refrigerator, a gas oven, a
dishwasher, and a frontloading washing machine.
By systemizing all processes from design to
planning to installation, Bellagio creates
a unified new-concept kitchen.
Global Market Share (as of end-2004)
Air conditioners (No.
1, 19.8%), microwave ovens (No. 1, 23.3%), washing machines
(No. 2, 10.6%), and refrigerators (No. 3, 8.6%)
2004 Performance
The Digital Appliance
Company has posted a substantial annual growth rate of 22% since
2001. In 2004, this division posted USD 8.5 billion in global
sales, up 23% from the previous year, and an operating profit
ratio of 5.2%, effectively seizing the “Global Top 3”
position.
Due to strengthened export policies, Digital Appliance Company
experienced a 10% growth rate from 2003 to 2004. LG Electronics’
home air conditioners have seized the world’s No. 1 spot
for five consecutive years, and its microwave ovens and washing
machines have solidified a position among global leaders.
