LG goes premium with advanced white goods

With modern styles and a keen sense of design, the global and regional digital leader is receiving rave reviews for its high-end appliances as it makes the transition to becoming a premium brand.

In its October 30, 2006 edition, leading American magazine BusinessWeek reported that LG's Digital Appliance Company is emerging as a top brand in the US, providing its high-end goods to major retailers such as Home Depot and Best Buy. "Even more remarkable is that LG has fuelled its growth by going upscale," the magazine explained. "The Korean manufacturer has targeted consumers willing to spend a few hundred dollars extra for snazzy designs and high performance."

BusinessWeek highlighted some of LG's flagship products in its on-line slide show, including LG's steam washer, ARTCOOL air conditioner, built-in oven and three-door refrigerator.

As LG shifts its business focus from low-end to premium products, its unique and innovative devices have started a new trend in home appliances - white goods that are no longer white. Many of LG's appliances are designed to visually work with today's new home styles, and products such as the company's Tricia Guild-designed steam washer, its air conditioner with replaceable or picture frame front panels and its Swarovski crystal- and flower pattern-accented Art Refrigerator serve as the centerpieces.

LG is not just about looks, though - they have taken some of the pain out of housework by making their innovative products easier to use as well as nicer to look at. LG's design philosophy is not just about style; rather, it is about creating products that offer practical value to customers, while at the same time, hopefully adding a little fun.

For example, LG's built-in oven, one of the company's red dot design award-winning products, features a four-inch colour LCD panel that provides various information and functions though an animated character that makes cooking fun and easy.

However, simply having a pretty face does not guarantee being a premium brand in today's competitive business world. That's why LG puts just as much emphasis on performance and technology as it does design. For example, LG was the world's first to incorporate steam technology in a washing machine, which is now becoming a common feature for new products in this category.

Additionally, LG Digital Appliances, in cooperation with LG's display and mobile technology, released the world's first interactive refrigerator and several other similar convergence products. In 2006, LG Home Appliance invested more than US$2.5 billion in R&D facilities for new products and technologies.

"LG has been concentrating on the premium segment and has been experiencing remarkable success in the Middle East and Africa since 2005, where we are positioned as a premium brand with high-end stylish products," said Mr. K.W. Kim, President of LG Electronics, Middle East and Africa. "We will continue to lead the industry with never-before-thought-of designs and technologies in all of our products."

At Home Depot's 3,000 outlets nationwide, LG comprised 5.5 per cent of the market for refrigerators and 5.9 per cent for washing machines in the first half of 2006. Aided by this stateside success, LG has become one of the top three appliance manufacturers in the world, with the company achieving US$10 billion in sales in 2005.

LG Electronics' operating profit was 5.9 per cent in 2005, one of the highest among leading international home appliance brands.

LG has recently increased its profile in the US even further, as the CES (Consumer Electronics Show), named LG the recipient of Innovation awards for 2007, for products including its refrigerator, washing machine and electric range. CES, held annually, is the world's largest consumer technology tradeshow, and it honors the most innovative products each year.

LG's new breed of appliances has broken the boundaries of the traditional white goods market with their convergence of functionality, technology and fashion. LG believes its emphasis on innovative designs and pioneering technologies will give them an edge in the premium electronics market for years to come.