US$1.4 billion in sales is a 20% year-over-year growth for LG Electronics (LGE) in the Middle East and Africa markets. LGE’s LCD business grew 217% year-over-year, GSM mobile phones grew 62%, the PC division grew 38% in revenues.
LGE’s K.W. Kim, President
K.W. Kim claims the company will surpass US$2.7 billion, its sales target for 2006. The company’s “Blue Ocean” strategy allows it to focus on premium products that add value and keeps it away from price wars. In 2005, LGE was the world’s largest supplier of CDMA mobile phones, non-commercial air conditioners, DVD players, optical storage devices, home theater systems and TVs. It trailed in second place in plasma TVs and plasma display panels (PDPs).
LGE enjoys a strong market and brand presence in the world, except for in the US. I don’t know why. In the US, it is very difficult to find LG-branded CE products at large retailers like Best Buy, Circuit City and CompUSA. And if you do find a LG-branded product, it is often priced equally to a Sony or Panasonic. LGE’s products might be well-built and the designs might be nice, but I have not yet been convinced that they are so and will not pay that much money. My advice to LGE in the US: Price it below Samsung and when you have proven yourself to me that your products are great, I will come back to buy other LG-branded products, in 5-7 years, the time it takes to thoroughly test a TV. For now, I’m leaning toward purchasing a Samsung DLP TV.
Source: ITP Technology