Seoul, Korea, January 9, 2009 – LG Electronics, a global leader in TV and home theater products, today unveiled its ambitious plans to become one of the top two flat panel display makers in the world.
The company is aiming for 16 percent overall market share in flat panel TVs and sales of more than 21 million TVs in 2009. By category, the company plans to sell 18 million LCD TVs, giving it 15 percent market share, and 3 million plasma TVs, for 19 percent of the market.
Making the announcement in advance of CES 2009 from its headquarters in Seoul, LG also unveiled its vision and strategy for its newly launched Home Entertainment Company division, which will be responsible for products such as televisions, home theater systems, disc players and home audio.
“Our goal is to offer LG products in the context of consumers’ lifestyles,” said Simon Kang, CEO and President of LG Home Entertainment Company. “Our business re-alignment will allow us to provide a more complete and integrated home entertainment experience by creating more synergies between our TV and audio-video products.”
LG aims to achieve over 18 million LCD TV unit sales, 15 percent market share
LG revealed five key initiatives designed to help achieve its ambitious business objectives for the LCD TV business in the wake of the global economic downturn.
First, LG wants to clearly differentiate in consumers’ minds the product benefits that the company sees as driving future growth of its LCD TVs, namely its expertise in LED backlight, wireless, broadband and TruMotion 240Hz technologies. LG also plans to extend its mid- and small-sized TV line to accommodate customers with diverse preferences and needs.
“LG will pursue a two-front business strategy during the current global downturn as a way of increasing sales momentum, investing more in marketing campaigns and research and development,” said Mr. Kang. “We will strengthen our position as a top LCD TV maker, leveraging today’s business challenge as a real opportunity to grow while others take a more conservative approach.”
By reinforcing its brand identity with a new creative advertising campaign and employing diverse distribution channels from premium markets to mass merchandisers, LG’s strategy is aimed at maximizing sales in the environment of a shrinking market. LG’s two-front strategy will also enable the company to widen its consumer base while still maintaining its premium status.
LG’s third key initiative is the continued expansion of its supply chain management (SCM) infrastructure. The company will also strengthen its partnership with panel maker LG Display to promptly and efficiently meet market needs and guarantee steady profits even in today’s difficult economy.
The company’s final priority for its LCD TV business is the expansion of its efforts in developing newer technologies such as OLED, 3D displays and touch screens, as well as investing in new areas, especially in the business-to-business (B2B) sector.
Focus on profitability and sustainable growth for plasma module business
In plasma TVs, LG aims to strengthen its leadership by targeting increased profitability. LG plans to focus on the large-size (over 50-inch) flat panel display market where plasma TVs still occupy significant market share. The company is also increasing its focus in the business-to-business market, where plasma TV has shown strong growth potential in the commercial display category.
Following last year’s transformation of its PDP module A1 line into a solar battery production line, LG’s plasma TV and plasma module divisions will also merge in 2009 in order to eliminate costs and speed up execution, resulting in increased market share in the plasma sector.
Continuing Blu-ray leadership in audio-video products
For its audio-video business, LG plans to continue its Blu-ray leadership by strengthening networking features in partnership with online contents providers including Netflix, YouTube and CinemaNow.
LG will also focus on premium audio systems such as its Blu-ray home theater system.
At CES 2009, LG plans to introduce its Pure HD Sound audio technology, which will be available in LG’s high-end audio products. This technology, which delivers sound as vivid and real as a live performance, is made possible through the company’s collaboration with high-end audio expert, Mr. Mark Levinson.
“The merger of our digital display and media businesses into LG Home Entertainment Company will benefit consumers because it is re-aligning our focus from our products to what’s really important, which is how LG can make consumers’ lives better,” said Mr. Kang. “We are confident this will become LG’s major competitive advantage in 2009, creating even more new value for our customers when times are tough and there’s less opportunity to venture outside the home for entertainment.”
