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Sunaina Rana / Emirates Business
LG’s innovative technologies, unique products, and cutting-edge designs are an investment in the future.
With 2014 global sales of US$55.91 billion, LG comprises four business units — home entertainment, mobile communications, home appliance and air solution, and vehicle components. This is one of the world’s leading producers of flat panel TVs, mobile devices, air conditioners, washing machines and refrigerators.
Emirates Business talks to Yong Geun Choi, President of LG Electronics Gulf, regarding the latest transition of the technology.
Can you shed some light on the electronics market in the region?
In the run-up to EXPO-2020, the next few years will see substantial investments in the booming retail electronics industry. Consumer satisfaction is key for us at LG
Electronics and our new showroom is an embodiment of our commitment to our customers.
Our first exclusive brand showroom in the UAE was opened with the intention to give all our customers a comprehensive insight into our complete line-up. With showrooms now expanded to offer a broader product-line up, we have seen clear indications of sustained consumer interest and growth for innovative electronic products. Brand reputation and product experience are key to consumer purchase. Within the region specifically, the developed retail environment plays a vital role along with the product experience for consumers to buy the latest technology.
In addition to this, the consumers from the Middle East are very tech-savvy and they always strive for the latest and best in technological
innovation.
Can you share about your
experience at LG?
It has been an enlightening journey. I have been with LG for over 25 years across several different markets and different roles in the region. In my experience with the company, I believe that LG has an innovative approach in terms of retaining, nurturing talent and is truly a leader in the space of consumer electronics that makes consumers believe that Life is Good.
What was the turnover LG had witnessed in 2015? What are your expectations in 2016?
Our business activities last year focussed on strengthening our lineup of products that were tailored to specific market demands and improving LG’s brand power in the premium market by focussing on premium products. As a company, we are focussing on having a more competitive product line-up. We are focussing on paying more attention to the voice of our consumers to find out the needs of the region. At the same time, we are focussing on the need to make a localised hit product to drive our business success. Bearing in mind, our business objective should be focussed on sustainable growth by fulfilling ‘hidden consumers’ needs rather than pursuing short term sales goal.
2016 will be yet another exciting year for LG. Delivering innovation for a better life is the foundation of LG’s product strategy for 2016, our innovative products this year have received a lot of appreciation and that inspires us to innovate and
develop advanced
technologies that deliver new
levels of
entertainment,
convenience, comfort, security and energy savings. Complementing LG’s ongoing leadership in televisions, mobile devices and appliances, high-growth areas such as automotive components, energy, IT and B2B are expected to drive more of LG’s growth going forward. So, yes in that sense, as a company we have solid plans laid to retain our market leading position.
The fluctuating oil prices have been of great concern to the economy of the region. How do you feel this flux can affect your industry?
It is true that oil prices across the globe have created difficulties for global manufacturers. Since uncertainty in select foreign markets is expected to continue for the foreseeable future, LG Electronics constructed a system allowing the company to react quickly to changing market situations by reducing its inventories. Ultimately, we will give more weight to sales in premium products in order to reinforce our profit structure. We have already seen some tangible results due to sales increases of OLED and large-screen UHD TVs.
With a strong competitive market, what in your opinion keeps LG out of the league?
We have a secure strategy that aims to increase profits and growth by improving brand recognition within our premium product line-up. We can categorically say that in certain business units we are number one and in a couple we stand at two and three.
LG has been delving deeply into design and research that take full advantage of the technologically advanced era. Successful businesses not only respond to current needs, but often anticipate future trends and develop an idea, product or service that allows them to meet a future demand rapidly and effectively and for that, innovation is the key to stay ahead as technologies or trends evolve. Thus, in short — staying innovative is our strategy to increase our market share.
What are the challenges faced in the region at this point of time?
The adverse global economic conditions and a never-ending price war will have its impact on the industry. However, LG is devoted to emerging from this period as an agile yet premium brand capable of coping with market changes and consumer lifestyle trends. We are equipping LG with the tools that it needs to become a game-changer market with our innovative and stylish products.
What is the initiative that should be taken to pass such hurdles?
We have prioritised long-term improvements to our market position over increasing short-term sales prospects and rankings. By raising the profile for our premium products, we will achieve growth, thanks to a two-pronged strategy that aims to both provide differentiated premium products as well as to select and concentrate on the best mid-tier products.
Do you see any expansion plans in the coming future?
LG will seek to build its brand identity as a premium tier on the global B2B market. We will bolster our brand’s competitiveness in the market by providing LG OLED signage products.
LG’s OLED signage has reduced the gap between the screen and chassis, boasting the thinnest 1.8mm bezel-to bezel.
LG also plans to diversify the company’s B2B product offerings to cope with heavy market competition. Our products include video wall, which can bind screens by upto 32 units, webOS-incorporated digital signage and ultra large-screen 4K
signage.
Likewise, LG’s advanced technologies will combine with ADT’s long experience in the security industry to develop one-of-a-kind, smart home security solution in the of 2016.
