LG Electronics Air conditioner takes top spot for five consecutive years
Seoul, Korea, January 13, 2005 – LG Electronics (LG), a pioneer and leader in Home Appliance convergence, today announced that the company has once again taken the No.1 position globally in terms of market share, selling 10,120,000 air conditioners in 2004. This marks the fifth successive year LG has held the top spot in air conditioner manufacturing, beginning in 2000.Seoul, Korea, January 13, 2005 – LG Electronics (LG), a pioneer and leader in Home Appliance convergence, today announced that the company has once again taken the No.1 position globally in terms of market share, selling 10,120,000 air conditioners in 2004. This marks the fifth successive year LG has held the top spot in air conditioner manufacturing, beginning in 2000.
According to numbers reported by Japan-based Fuji Keizai Co., Ltd. (Fuji Economy Research Institute), 51,520,000 units of air conditioners sold worldwide in 2004, with LG taking 19.7% global share (18.4% in 2003), widening the gap with Chinese makers following. This means LG produced one in five air conditioners bought in 2004. LG global market share has seen steady growth since 2000. Selling 4.1 million units in 2000, by 2003 the company had doubled this figure to 8 million, a period of just three years.
In a move to accommodate emerging BRICs markets, LG established production facilities in China (1995), India (1997) and Brazil (2001). LG's Tianjin, China R&D center is particularly groundbreaking, as the first of its kind by a Korean manufacturer in that country. LG also dominates the Chinese and Indian markets, maintaining the highest market share in those regions. Also running branches in Turkey and Thailand, LG currently operates eight production facilities internationally.
This unprecedented success is founded on LG's patented technologies. LG's 'Gold Fin' practical application and semi-permanent heat exchanger were both firsts in 1999. LG also made famous such technological breakthroughs as the '5 mm tube of heat exchanger' in 2001 and the MPS (Multi Power System) in 2004, which acts as an air cooler in the summer and a heat pump in the winter. The company also introduced 'the 3-dimensional air cooling ' system in 2000, another world first.
LG has complimented its pioneering technology with artistic design elements, adding renditions of world famous pieces by Van Gogh and Sisley among others, on the front panel of its 'ART COOL' air conditioners. The ART COOL series also featured the 'Neo Plasma System', which allows healthier, more natural cooling.
In December 2004, LG achieved a new milestone, successfully reducing the production time of one air conditioner unit to 10 seconds, and that of one compressor to 5 seconds. This represents a 1.5 second improvement over the year before, which may seem insignificant but 1.5 seconds makes a momentous difference in considering the entire production line. David Park, Head of Overseas Sales & Marketing of Digital Appliance Company of LG said, "The speed of production has improved by 10 seconds, which means production capacity has improved by 31% over 2003."
LG's unique ability to combine 'globalization' and 'localization' strategies has partly made this unprecedented emergence possible, as it enables the company to adapt to the needs of local customers, recognizing regional, cultural, and religious differences.
David Park said, "We will expand markets in the new area of Commercial Air Conditioners (CAC), utilizing our strong global sales network in Residential Air Conditioners (RAC) and our role as a technology leader. We are planning to increase the number of local sales engineers to fortify our CAC networks and invest more heavily in R&D. I am confident that our solid base in RAC will help us to maintain our leadership role, this time in the new field of CAC. We thus intend to finally cement our leadership position and become the number one air conditioner brand in both categories by 2010."