LG Electronics notches up 45 percent half yearly growth in Middle East and Africa

This stellar performance is attributed to strong sales in the company's strategic businesses such as digital TVs, PDPs, and mobile handsets as well as premium home appliances. All 13 LG area bases in the region have recorded positive growth with sales increases across the board in both product segments and country profiles. Top performing markets were Turkey, which produced a sales turnover of US $ 72 million, up 148 percent compared to the first six months of 2003, Tunisia which posted results of US $ 27 million, an increase of 125 percent over the same period, and Morocco which posted a turnover of US $ 53 million and a rise of 113 percent. Major sales gains were also reported in South Africa, UAE, Egypt and Ivory Coast.

"We are now the region's leading consumer electronics supplier, a claim we make after studying the product breakdown of our competitors' performances," said K. H. Kim, President of LG Electronics, Middle East and Africa Operations. "The Middle East & Africa region is a strategic market for LG Electronics and contributes significantly to LG's global results. Continued sales growth and performance has been achieved through an aggressive product launch calendar and intensive region wide marketing initiatives. Our aim is to be number one across the entire region and we are on track to achieving that."

Regionally, top performing products for the first six months were GSM mobiles, which earned US $ 54 million, a 100 percent increase over 2003, microwave and toasters, which brought in US $ 27 million, an increase of 92.9%, PDPs which accounted for US $ 27 million, a rise of 92.9%, washing machines which accounted for US $ 67 million, a growth of 86.2%, and central air conditioners, which earned US $ 43 million, an increase of 79.2%.

The results saw LG maintain its market leading status as the leading supplier of TVs, split air conditioners, computer monitors and optical storage products. In these product segments, Kim said growth was driven by the introduction of a wide range of new products and superior technology. "We are strengthening our market leading position by rolling out technologically advanced products to cater to the demands of specific markets. We believe localising products enhances overall brand equity and will invest in our core capability in digital TV, PDP, LCD and other next generation display products in order to further boost market leadership," he said.

In the GSM mobile segment, the company has achieved 100 percent growth and posted sales of US $ 54 million for the first six months of 2004, compared to US $ 28 million of the corresponding period last year. LG has become a serious competitor in the region's mobile market by introducing niche products to meet specific customer needs.

Value creation for customers is a focal point of the LG management philosophy and the company has information centers in 13 countries across the region and digital service centers in 26 cities. Successful product launches during the first half of this year include ArtCool air conditioners, TV refrigerator, 42" Hurricane plasma TV, 42" LCD TV, optical storage devices, cutting edge audio, video, home theatre and DVD products, plus additions to LGE multi-award-winning ranges of Flatron televisions and monitors, vacuum cleaners and microwave ovens. The company set a benchmark in regional innovation with the launch of its new mobile handset, the F7100 Qiblah phone, the world's first to feature an indicator setting which points to Mecca.

Over the past six months the countries producing the biggest percentage sales increases were Turkey, Morocco and Tunisia. "Despite the recent upheavals in Turkey, LG remained confident of the potential of this market. Our success is the result of concerted efforts, new products introduction and focused marketing. LG GSM and IT products have performed very well in this market," said Kim.

LG posted sales of US $ 201 million for the first half of this year in Iran, a 24.1 percent growth over the corresponding period last year. "Iran is LG's biggest market in the Middle East," said Kim. "We are a leading brand in all major product segments, except in GSM mobiles."

The company's position has strengthened in the central air conditioner, PDP and GSM segments in the UAE. Higher UAE sales of US $ 189 million have been credited to new product launches and aggressive marketing in these product categories. In Saudi Arabia, reorganisation in partner organisations and renewed focus on key products has resulted in a 18.6 percent increase in sales turnover from US $ 86 million on June 30, 2003 to US $ 102 million on June 30, 2004.

"Aggressive marketing and better economic conditions have aided LG's growth in Morocco and Tunisia. In Morocco, LG ranks among the leading GSM brands," explained Kim. "We have achieved this via aggressive marketing both at corporate and tactical levels."

On the marketing front, LG will continue its commitment both to sports and community marketing. For the next two years, LG is the official sponsor of both the Iraq national football team and the country's Olympic team. Other activities include innovative channel and marketing campaigns, the LG Soccer Cup in Nigeria, organizing high profile music festivals around the region and the establishment of a regional public relations network to produce country/area specific messages.

"Our marketing will take on more social issues in the future as we strive to get closer to our customers and take on the mantle of the region's leading national brand. We will launch unique marketing campaigns including another LG Soccer Cup, a music festival in Dubai and participate at Gitex, the leading IT trade exhibition in the region. More product launches are in the pipeline and we will strengthen our position in the GSM segment. We are on course to meet our sales target of US $ 2.3 billion by 2005," said Kim.