LGE Mid East breaks USD1.5B mark with 32 per cent sales increase

The result takes the global digital leader through the US$1.5b mark for the first time in the region. At the same time, the company has cemented its regional market leadership in monitors, TVs, PDPs (plasma display panels), OSDs (optical storage devices) and split A/C sales.

"Our overall figures for 2003 show phenomenal growth in a number of market sectors and countries across the region," said Mr. K. H. Kim, President, LG Electronics, Middle East and Africa Operations. "The performance is above target expectations and reinforces LG's standing as the region's number one consumer electronics brand.

"In washing-machines, vacuum cleaners and audio products, LG recorded regional sales increases of between 43% and 54%, but the biggest increases were in PDP and mobile phones.

"Plasma display sales have surged in the last 12 months and LG recorded a 70.59% increase in regional turnover last year while in mobile phones, LG gained a massive 685% rise in revenues."

LG's biggest regional revenue earners last year were; Iran recording US$358 million turnover; the UAE with sales of US$246 million and South Africa with turnover of US$235 million.

The countries recording the highest revenue increases in 2003 were Morocco at a whopping 88.24%, South Africa with a 58.79% increase and the UAE just behind with a 58.71% rise over 2002 figures.

"Tunisia took a 36.12% hit on revenues in 2003 that can be attributed to financial restructuring at a macro-economic level by the Tunisian government and Central Bank," said Kim.

"Saudi Arabia used 2003 as a consolidation year, taking an opportunity to make refinements to its distribution profile and support network. The progress made and changes implemented should see this market achieve double-digit growth once more in 2004.

"On a development note, LG opened its first office in East Africa with a new branch in Nairobi, Kenya."

Kim added that 2003 also saw LG develop a number of 'world firsts' that propelled the Korean brand even further in unaided awareness throughout the Middle East and Africa.

The company launched its Qiblah mobile handset, oxygen-generating split A/C, 76-inch PDP screen in 2003 and opened two new frontiers in sales sectors.

"Last year, the Middle East became the first market outside of Korea to sell LG notebooks and PCs giving the brand greater sway in the IT market," said Kim. "And with further product introductions through the year, LG made its mark on the desktop and laptop sectors and this will become a very lucrative market for us this year."

LG Electronics also became the first to commercially introduce home-network appliances to the Middle East in 2003 with the launch of its microwave oven, washing machine and air-conditioning units that can all be connected to an Internet enabled refrigerator that acts as a control hub.

"These premium products assisted in propelling LG Electronics regional brand profile to reach unaided awareness goals two years ahead of target," said Kim.

"Across the Middle East and Africa, LG now has an average of 50% unaided brand awareness and we are on course to achieve our overall ambition to place LG as top national brand in all operating countries by 2007.

"We still have work to do to get there and we must follow the guidance we have been given by our new CEO, S. S. Kim to attain top national brand status."

Traditional Korean companies have been under pressure to adopt a more transparent corporate structure and LG Electronics is one of the first to change its management and corporate organisation. The appointment of S. S. Kim as new CEO paved the way for the adoption of new management systems and partner programmes.

One of S. S. Kim's foremost management mantras is to regard change as an essential building block for the future. LGE's operations in the Middle East and Africa began change programmes in 2003 that K. H. Kim says will continue in 2004 to keep LG ahead of its competition. He added the 2004 focus is to continue efforts in TDR (tear-down-and-redesign) exercises throughout the entire LG network.

"Our efforts in TDR projects through 2003 reaped rewards but we must progress the philosophy through 2004 to ensure LG maintains and even increases its high levels of customer satisfaction in all key disciplines," added K. H. Kim.

"LGE, its partners and dealers have all embraced TDR as a constant requisite in our long term goals. By examining what we do and how we do it, we can identify areas for improvement and by responding we will ensure customer satisfaction.

"Our 2004 philosophy will involve more interaction with our customers, accelerated 'smart' marketing efforts and heightened PR activity."

On a regional level, LG will integrate marketing efforts with its dealers, support seminars and joint promotions with wider cause-related marketing projects and continue its highly successful sports-marketing ventures.

"The customer will remain LG Electronics' primary focus. Every action, tactic and service we offer is customer-centric," said Kim.

"Regionally, we will reinforce service marketing and bolster our service systems to raise LG's profile to number one in customer service indices in 21 countries by 2005."

Buoyed by the strong 2003 returns, LG is now looking to break the US $2 billion annual turnover mark throughout the Middle East and Africa this year.

"Our regional success is undoubted," said Kim. "LG has achieved excellent results in the last two years and will continue to do so."