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LG Electronics to bolster local strategies, B2B push to widen gap with rivals

ANN/THE KOREA HERALD – South Korean home appliance giant LG Electronics said it will strengthen its country-by-country strategy to compete against its growing rivals.

“Chinese firms have deviated from a low-cost strategy and are actively investing in each production region, while strengthening their products and brand power,” Vice President and Head of Home Appliance and Air Solution Business Division at LG Electronics Kim I-kueon said during the company’s earnings conference.

“In response to this, we are planning to come up with customized strategies for each country, comprehensively diagnosing the latest issues and firm’s competitiveness country-by-country,” he added.

The company will decide on markets to focus on, considering the resource investment priorities, market size and Chinese firms’ pacing threat, according to Kim’s explanation.

Although it might not be easy to secure profitability from our existing home appliance business alone due to intensifying market competition we will maintain the current level of profitability by upgrading our portfolio on fostering new growth engines, strengthening business-to-business segments, and promoting new businesses.”

The tech giant has also set its sights on generating over KRW40 trillion in sales from its B2B operations by 2030. LG’s business-to-business sales currently account for more than 30 per cent total this year.

LG Electronics’ headquarters in Seoul, South Korea. PHOTO: THE KOREA HERALD