LG Electronics to Ship 10 Million Washing Machines in 2008
Company aims to become top global brand, attain total sales of USD 7 billion by 2012
Seoul, Korea, July 29, 2008 - LG Electronics (LG), a pioneer and leader in home appliance convergence, today introduced its flagship washing machines for the second half of 2008 and announced its business strategies for achieving the top position globally in this category as well as total sales of 7 billion USD by 2012. LG introduced the new products and its strategy at a launch event and press conference at the Lotte Hotel in Seoul, Korea.
“Our washing machine business has shown solid sales in spite of global economic hardship thanks to effective localization strategies and reliable products,” said Young-Ha Lee, President and CEO of LG Digital Appliance Company. “Constant introduction of products based on consumer insights and progressive technology will allow us to become the global leader in washing machines.”
Despite the global economic slowdown, sales of LG’s premium products have increased dramatically, with total washing machine shipments expected to reach 10 million units in 2008, a 12 percent increase from last year. In front-loading washing machines, one of the fastest-growing areas of the industry, LG’s accumulated sales volume from 1990 through 2007 has reached 10 million units. Last year, LG also recorded global sales of USD 2.3 billion, successfully entering the global top three following Whirlpool and Electrolux. Strategic plans for each product segment to reach top global status
In August, LG is launching a new front-loading washing machine in North America, featuring a 16.9-inch wide square-shaped door and the industry’s highest capacity in the standard size washing machine category at 4.5 cubic feet. Through segmenting premium consumers and with competitive differentiations such as steam technology and ergonomic design, LG has led the front-loading washing machine business in North America. LG plans to strengthen its presence in mature countries such as North America, Europe, CIS and Korea, where demand for premium products is high.
As for top-loading washing machines, LG is launching products incorporating diverse features and extended capabilities intended to attract the niche market between top-loaders and front-loaders, as it emerges from its earlier focus on the value product segment.
In addition, by introducing its premium line-up of dishwashers, which are already strong sellers in Australia and South Africa, LG is looking to expand sales to new potential markets from the mature base it has established.
LG has successfully penetrated into Australia and South Africa and seeks to expand sales from mature and potential markets.
With LG’s specialized products including front- and top-loading washing machines, dishwashers and dryers, the company is leading new trends in the global appliance industry. LG persistently conducts extensive analysis and research on the direction of the market and new technology in order to gain consumer insight.