LG records USD 2.1 billion sales in 2004

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        'caption' => 'K. H. Kim, President of LG Electronics, Middle East and Africa Operations announcing the record sales turnover of US $ 2.1 billion, a 38 percent increase in its Middle East and Africa Operations in 2004.',
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In its best-ever regional performance, LG's digital appliance sales accounted for US $ 832 million, home electronics US $ 785 million, IT products US $ 315 million and GSM handsets US $ 169 million. The company's biggest selling regional markets last year were Iran, accounting for US $ 388 million in turnover, the lower Gulf, notching up US $ 364 million in sales and South Africa, reporting sales of US $ 344 million. Turkey, registering sales of US $ 145 million, Iraq US $ 65 million and Morocco with turnover of US $ 112 million were its fastest growing markets.

'We are the region's leading consumer electronics brand, 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 and Africa region is a strategic market for LG Electronics and contributes significantly to LG's global results. Continued sales growth has been achieved through an aggressive product launch calendar and intensive region wide marketing initiatives. For 2005, LG is targeting overall regional sales of US $ 2.8 billion, a 34 percent growth over 2004.'

LG has maintained its market leading status as the leading supplier of TVs, air conditioners, monitors, refrigerators, mobiles, washing machines, PDPs and optical storage products. Growth in these product segments 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 focus on mobile phones, notebooks and PDP televisions. We are aiming to achieve sales turnover of US $ 100 million in notebook sales and US $ 300 million in handset sales this year,' said Kim.

'We sold notebooks worth US $ 25 million last year; with the restructuring of the mobility division our priority product categories for this year are notebooks, mobile phones and PDP televisions. All of these products are earmarked for double-digit percentage growth. In 2005, we will also focus on 3G and car entertainment products as well.' he added.

LG is the market leader in the PDP TV segment in 17 countries including the UK, Germany, Spain, Australia, Saudi Arabia, and South Africa; the company aims to be the market leader in 30 countries by 2005. By focusing on strategic linkages between home audio-video, car infortainment and mobile audio-video business, LG aims to rank among the top three global players in the digital display and media segment by 2007.

LG has retained its ranking as the world's leading air conditioner supplier for the fifth consecutive year selling more than ten million units in 2004, securing 20 percent market share. Leading Japanese market research consultancy Fuji-Keizai estimates that the Korean giant made one out of every five A/Cs sold around the world last year.

'In the TV, AC and monitor categories, not only have we retained our market leadership, we have consolidated this lead with double-digit percentage growth in each segment. We have registered turnover of US $ 395 million in TV sales, 327.60% increase over 2003 in PDP category, a 67.10% increase in washing machine sales to US $ 132 million and US $ 52 million in microwave ovens, an increase of 67.80% over 2003,' said Kim.

Regional sales of LG air conditioners improved 26.90% last year accounting for US $ 349 million in turnover. Monitor performance rose 18.40% to US $ 200 million and optical storage devices sales increased 13.50% to US $ 59 million. Optical storage devices and multi-media results were improved by the regular introduction of cutting-edge products, such as the portable laptop drive and an extension of LG's combi range. The company sold vacuum cleaners worth US $ 27 million, 35% to increase over 2003, and audio, video components worth US $ 85 million and US $ 71 million respectively.

In the GSM mobile segment, LG has achieved 8.9 percent growth and posted sales of US $ 160 million last year compared to US $ 147 million in 2003. The company has become a serious competitor in the region's mobile market by introducing niche products to meet specific customer needs like the Qiblah phone, the world's first handset with Qiblah and Azan functions.

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 in 2004 include the Qiblah phone, Primian refrigerator, ArtCool air conditioners, TV refrigerator, 42' LCD TV, optical storage devices, cutting edge audio, video, home theatre and DVD products, plus additions to LG multi-award-winning ranges of Flatron televisions and monitors, vacuum cleaners and microwave ovens.

According to the 2004 Gallup brand equity index survey, LG is the second most recognized electronics brand in the Middle East and Africa, achieving 55.7 percent unaided brand awareness regionally. In Saudi Arabia and Pakistan, LG emerged as brand champions with a whopping 74.6 percent and 74.5 percent unaided brand awareness followed by Iran with 71.2 percent and Morocco with 69.7 percent. 'Regional brand equity has emerged far higher than the global average of 37% emanating from 25 surveyed countries outside the Middle East and Africa,' said Kim. 'Average unaided brand awareness of LG throughout the region has increased from 50 percent last year; focus markets for 2005 include Morocco, Egypt and Nigeria.'

'This record-breaking performance is due to several factors and initiatives. We implemented a very focused strategy across certain product categories and greatly enhanced our after-sales service operations region-wide,' explained Kim.

On the marketing front, LG will continue its commitment both to sports and cause related 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 Football Cups, organising high profile music festivals around the region and the establishment of a regional public relations network to produce country and area specific messages.

'Our marketing will take on more social issues this year as we strive to get closer to our customers and take on the mantle of the region's leading national brand. We have already initiated 'Marketing to Women' program in Dubai last year, we will roll this out throughout the region in 2005. LG aims to become the top national brand by putting people's needs and aspirations at the heart of our business. We will continue to introduce products that serve genuine and relevant customer needs,' said Kim.