The Middle East and Africa play a major part in LG Electronics’ strategy for global leadership in the consumer electronics industry, and region-specific product innovation will continue to inspire the ‘Life’s Good’ brand.
That is the verdict of Mr. S.S. Kim, Vice Chairman and Chief Executive Officer of LG Electronics, who visited Dubai for the second time in less than two years as part of a regional tour.
LG’s global head also earmarked the company’s GSM handset products for major growth in the Middle East and Africa this year, replicating the digital leader’s dominance in the CDMA segment.
Addressing international media at Dubai’s prestigious Burj Al Arab hotel, Mr. Kim said: “Our success in the Middle East and Africa is remarkable. The construction boom and changing customer trends in a young and rapidly growing market are presenting big opportunities for the brand.”
He said: “LG aims to rank among the top three global electronics and communications companies and double sales, profitability and shareholder value by 2010.”
LG Electronics registered worldwide sales of more than US$35 billion in 2005. The mobile communications, digital appliances, and display divisions each contributed around US$10 billion – and media products generated sales worth US$5.5 billion.
Last year, LG maintained its world number one position for CDMA handsets, residential air conditioners, DVD players, optical storage devices, home theatre systems, and TVs. LG was number two for PDP TVs and modules, with a market share of 15 and 27 per cent respectively.
Described as the ‘Jack Welch of Asia’, Mr. Kim said: “Our target for global sales in 2006 is over US$43 billion, and that’s 23 per cent growth compared to 2005. We expect US$14 billion to come from our display division, US$12 billion from mobile handsets, US$11 billion from digital appliances, and US$6 billion from the media business.”
Mr. Kim congratulated LG’s regional team on their hard work and business performance: “The Middle East and Africa have traditionally been important markets for air conditioners, but new product categories are also having a major impact. Demand for LCD and PDP TVs is very encouraging in both the commercial and domestic sectors, and combined sales increased by 75 per cent last year. We are also the number-one selling laptop brand in the UAE from specialist electronics stores.
“But the biggest opportunity comes from GSM handsets. A lot of time has been spent building up our distribution channel in the region, and we are introducing an excellent, youthful new product line-up for our regional customers.”
Mr. K.W. Kim, President of LG Electronics Middle East and Africa operations, said: “The visit of our Vice Chairman and CEO to Dubai for the second time in less than two years reflects the importance of the region to LG, and that’s great news for our customers.
“LG has pioneered region-specific technology like the F7100 Qiblah phone and the Primian dates refrigerator, and value creation for customers is a focal point. We will target regional sales of US$2.7 billion in 2006, making for 20 per cent growth compared to 2005. We will be guided by LG’s Blue Ocean strategy, which aims to reinforce the differentiation of the brand.”
LG’s regional marketing strategy for 2006 will place greater emphasis on young people and women. At the global level, Blue Ocean focuses attention on products offering the maximum growth potential, market share and profit generation.
CEO and Vice Chairman since 2003, Mr. S.S Kim introduced the 6 Sigma Innovation Activity Program to maximise product quality performance, and is widely credited with leading LG’s advance as premium consumer electronics company. He also boosted efficiencies and slashed costs by up to a third through the company’s ‘Tear Down and Redesign’ project.
About LG Electronics, Inc.
LG Electronics, Inc., (KSE: 06657.KS) is the leader in consumer electronics and mobile communications. The company has more than 72,000 employees working in 77 subsidiaries and marketing units around the world. LG Electronics is the world’s largest producer of CDMA handsets, residential air conditioners, optical storage devices and home theater system. With total revenue of more than US$ 35 billion (consolidated US$ 45 billion), LG Electronics is comprised of four business units: Mobile Communications, Digital Appliance, Digital Display and Digital Media.
LG Electronics’ goal is to enable the intelligent networking of digital products that will make consumers’ lives better than ever. For more information, please visit www.lge.com
