LG Aims for Display Sales of USD 20 Billion in 2010
These objectives, intended to reinforce LG’s status as a global top tier display maker, include increasing total display sales by 30 percent to USD 20 billion and tripling productivity by 2010.
“Competition has intensified since the flat panel TV industry has fully matured,” said Simon Kang, President and CEO of LG Electronics Digital Display Company, during a press conference at IFA. “However, we are confident that focused, localized marketing activities emphasizing our products, which embody the perfect harmony of design and technology, will separate us from our competitors.”
LG will take a four-part approach to achieving its ambitious goal to increase overall display sales to USD 20 billion by 2010. This includes upholding its image as a premium brand, increasing returns on invested capital, maintaining product leadership and expanding its business portfolio.
LG has established itself as a premium brand by systematically focusing on brand marketing activities, for its products which balance stylish design and smart technology.
The company plans to invest USD 500 million in marketing through 2010 and will take a segmented, regional approach.
Most of this marketing will focus on the six regions of North America, Central and South America, Europe, China, the Middle East and Africa as well as CIS. LG plans to reinforce partnerships with premium distributors and centralize brand marketing activities in developed markets such as North America and Europe.
LG will maximize its return on invested capital through outsourcing, innovative manufacturing technology, and an advanced supply chain management system. Because of this, LG plans to allocate its own talent and human resources into higher value-added areas, while using outsourcing strategies that will give it a competitive advantage on cost.
In addition, introducing a cell production system will allow LG to manufacture large volumes of a few products or small quantities of niche products, helping the company triple its productivity in two years.
In contrast to assembly line manufacturing, in which a large number of people work on stages of an individual product, cell assembly allows one person to assemble a TV from start to finish. In order advance its global supply chain management, LG will control its supply network in real-time and improve network visibility from supply to distribution.
To ensure product leadership, LG is dedicated to creating products that offer differentiated value, based on customer insights. As part of this, the company will invest USD 1 billion on research and development by 2010.
LG will further diversify its product line-up based on consumer preferences and reinforce its R&D network by leveraging partnerships with sister brands such as LG Display, and LG Innotek and LG Digital TV Lab.
Further, LG will reinforce its business to business segment, developing new business models that the concentrate on selling products for use in public places including hotels and airports, especially in North America and Europe.
LG also sees broadband TV as one of its future growth engines. Along with partners, LG will offer a wide range of content direct to TVs via the internet, including 3D graphics, high resolution movies and more.
Despite the global economic downturn, LG demonstrated substantial growth in sales in the first half of 2008, meeting ambitious goals and objectives in its LCD and PDP businesses. LG’s LCD TVs recorded a 100 percent growth in sales volume compared to the first half of 2007. Additionally, LG’s PDP TVs saw 45 percent growth over the same period in 2007.
About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 82,000 people working in 114 operations including 82 subsidiaries around the world. With 2007 global sales of USD 44 billion, LG is comprised of four business units - Mobile Communications, Digital Appliance, Digital Display and Digital Media. LG is the world’s leading producer of mobile handsets, flat panel TVs, air conditioners, front-loading washing machines, optical storage products, DVD players and home theater systems. For more information, please visit www.lge.com.
About LG Electronics Digital Display Company
LG Digital Display Company is a leading producer of LCD and plasma TVs and is one of the world’s top makers of plasma modules. While focusing on creating feature-rich TVs, the company is also pursuing stylish designs and pushing technological boundaries to provide a more exciting viewing experience. LG`s product areas include: televisions and computer monitors, plasma display panels, projectors and others.
LG전자 개요
LG전자는 가전제품, 전자제품, 자동차 부품 등 여러 분야에서 기술혁신을 선도하는 글로벌 리더이며 세계 130여 개 사업장에서 사업을 전개하고 있다. H&A (Home Appliance & Air Solution), HE (Home Entertainment), VS (Vehicle component Solutions), BS (Business Solutions)의 사업본부로 구성됐으며 TV, 세탁기, 냉장고, 자동차부품, 사이니지, 로봇 등 다양한 분야에서 시장을 선도하고 있다.
웹사이트: http://www.lge.co.kr
연락처
LG Electronics Inc. Corporate Communications Seung Koo Park +822 3777 3627 이메일 보내기 www.lge.com/press
