LG Electronics CEO sets aggressive innovation targets
Las Vegas, Jan. 06, 2010 – The head of LG Electronics (LG) announced the company’s business goals for 2010 in Las Vegas on January 6 amidst the backdrop of the annual Consumer Electronics Show (CES).
Yong Nam, Vice Chairman and CEO of LG Electronics, he said he expects the innovations-driven processes established over the past three years to power the company to become one of the overall big three in the global electronics industry by 2012.
Last year, LG ranked third in the industry in terms of sales performance and profitability as a result of strong results across mobile phones, LCD TVs and home appliances. LG saw an increase in demand through the fourth quarter of 2009, outperforming its annual target while successfully reducing expenses by around KRW 3.2 trillion (USD 2.8 billion). In 2010, Nam said LG is aiming for KRW 59 trillion (USD 51 billion) in sales and KRW 3.6 trillion (USD 3.1 billion) earmarked for new investments, mostly in R&D and facilities.
LG will continue to invest heavily in recruiting international talent and expects the successful restructuring of its business to boost sales performance by more than 10 percent and 20 percent in return on invested capital. The reorganization will provide more decision-making powers to the regional offices in order to better respond to local market conditions and foster more global growth.
The company also has plans to strengthen its business-to-business capabilities to increase its focus on being a top solution provider. The new solar cell business is a strong potential growth engine as is healthcare and renewable energy.
Innovation and research are the key to future growth, Nam said. The CEO singled out B2B solutions, smartphones and intelligent TVs as significant areas ripe for innovation. LG experienced strong market share growth even during the recession and will increase investment in R&D, design, and brand development in the coming year.
Last year LG Electronics achieved a brand awareness in the U.S. of 94 percent -- 20 percent higher than three years ago -- while also jumping to 48 percent in unaided recall, up from 23 percent in 2006.
"LG has the will to become the world’s best electronics brand," said Nam. "As technology becomes commoditized, true innovation can touch consumers and reshape the market place to build greater brand value."
About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing more than 84,000 people working in 115 operations including 84 subsidiaries around the world. With 2008 global sales of $44.7 billion, LG comprises of five business units – Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions. LG is one of the world’s leading producers of flat panel TVs, audio and video products, mobile handsets, air conditioners and washing machines. LG has signed a long-term agreement to become both A Global Partner of Formula 1™ and A Technology Partner of Formula 1™. As part of this top-level association, LG acquires exclusive designations and marketing rights as the official consumer electronics, mobile phone and data processor of this global sporting event. For more information, please visit www.lge.com.
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