LG Vice Chairman & CEO inaugurates Regional Centre of Excellence

The 1,140 square metre facility, built with an initial investment of US$3 million, has been designed to showcase LG Electronics' range of market leading consumer electronics, I.T., digital display and mobile telephony products. LG estimates that up to one million local visitors and 30,000 foreign visitors will be attracted to the centre in its first operating year.

"LG has an ethos of putting the customer first in everything it does," said Mr. S. S. Kim. "This philosophy begins in the research and development stage and runs right through the company and its distributors to our after-sales service personnel.

"Without this customer-centric approach, LG Electronics would not have recorded the business growth it has experienced in the last few years."

The theme for the LG Digital Centre is a 'touch-and-feel' concept with the dual purpose of a consumer education centre and a regional sales and marketing training hub.

"The LG Digital Centre has been designed to offer customers the opportunity to see, learn about and operate current and future LG Electronics technology," said Mr. M. B. Shin, President, LG Electronics Middle East and Africa Operations.

"Highly trained personnel will staff the Centre and their prime responsibility will be to assist the public in understanding how LG's new technology can enrich and enhance their lives - no products will be sold here.

"In addition, LG's distributor network and dealers throughout the Middle East and Africa will be able to send sales and marketing staff for professional instruction on LG's full product range, enabling them to be better informed and thus, assist potential customers with accurate information."

Shin added that one aim of the LG Digital Centre is to remove the mystique behind technology and educate potential customers.

"Technology moves so quickly that sometimes potential customers can be left behind and not understand the full benefits of new products," he said. "Unfortunately, there is also a general sales culture that is not concerned with explaining the merits of new technology, nor with comparing one brand versus another.

"For example, if someone visits the LG Digital Centre and asks what the difference is between an LCD screen and a PDP screen for their particular needs, they will get a detailed explanation on the merits of each screen and why they should purchase one as opposed to the other.

"The customer will be able to compare the two technologies, talk with an informed professional and decide which is best suited to their needs. And that is as far as it goes because the LG Digital Centre is a showcase and education centre for LG products, not a sales showroom."

In addition to product displays and hands-on 'experiential' exhibits, the LG Digital Centre also houses a 120 seat training facility to accommodate a variety of purposes.

"Using the training facilities in conjunction with the 'hands-on' approach of the product display areas, LG aims to raise the standard of service throughout the region so its dealers and distributors are in an unrivalled position to assist customers," said Shin.

"LG will also use this facility as a multi-purpose venue for press conferences, product launches, conferences and other events."

Mr. S. S. Kim was recently named one of the 'Stars Of Asia' by Business Week has been credited with running one of Asia's most efficient manufacturing operations.

"Being named a 'Star of Asia' puts Mr Kim among the 25 Asian leaders which Business Week believes are at the forefront of change," said Shin. "That is quite an accolade for Mr Kim, who began his career with LG Electronics as an engineer over 30 years ago, and it is equally an honour for LG."

Kim, 58, was promoted to Vice Chairman of the global and regional digital leader earlier this year after having headed LG's highly successful digital appliances unit. Last year his division took in revenues of US $5.6 billion, more than double its US $2.7 billion sales of just five years ago. The unit now accounts for over half of LG Electronics' overall profits.

LG has come from nowhere to rank among the top five in the global home-appliance industry," Business Week says. "In air conditioners, LG is number one in 41 countries and also leads the world in global sales."

In addition, LG Electronics topped global production lists for microwave ovens in 2002. The Korean giant achieved the number one spot with sales of over 12.1m microwave ovens over the year according to a report from the independent Fuji Research Institute Corporation.

"One in four microwave ovens used in the world are made by LG Electronics," said Shin.

"The Vice Chairman has made no secret of the fact that he wants to take LG Electronics to the world's No: 3 digital appliance provider.

"Globally, LG Electronics will continue to develop sales and service initiatives such as the LG Digital Centre, that will take it beyond the competition to become recognised as the preeminent brand in consumer electronics, digital display technology and mobile telephony."