LG Aims for $13 Billion in Sales in North America in 2008
Jan 18, 2008
| Print this page
LG Electronics announced a goal of selling US$13 billion worth of products in North America in 2008.
"We have set an ambitious target for 2008 that is 13% higher than our revenues for 2007, Michael Ahn, president and CEO of LG Electronics North America, said at the 2008 International CES in Las Vegas. "We plan to achieve this by introducing high-end products that rely on advanced features and design, rather than low prices, to attract customers. We will also employ aggressive marketing campaigns that focus on strategic products and enhancing our relationships with major retailers."
In 2007 LG's sales in North America topped $11.5 billion, exceeding $10 billion for the first time since the company's introduction to the North American market. LG retained its role as a leading seller of mobile phones, including its new Voyager handset, and increased sales of high-end products like plasma and LCD TVs, front-load washing machines, and three-door refrigerators.
LG plans to enhance its image as a premium brand with products that compete based on their high-end features and designs rather than on price alone. To promote these products and this image, the company will launch a variety of marketing activities, including new online initiatives, further expose LG products and the LG brand to consumers through major national and regional retail partners, and make additional investments in consumer service infrastructure and quality control in order to achieve the industry's highest customer satisfaction rating. To further enhance brand awareness, LG will continue to forge partnerships to supply its products to major hotel chains and other venues that place LG products in the public eye.
LG will use the success of its latest mobile phones, to further its goal of becoming the second largest mobile phone maker in North America. The phones include Venus and Muziq, both 2008 CES Innovation Award honorees, and Voyager, a popular phone that includes both a full QWERTY keypad and touchscreen interface. The company will introduce other handsets in its premium line up that focus on the music and multimedia messaging features that are favorites of consumers in the United States. Additionally, LG is preparing to launch phones compatible with advanced 3G networks, demand for which is expected to rise sharply in 2008.
To differentiate itself in the market for flat panel TVs, where price competition is fierce, LG will introduce plasma and LCD TVs with innovative designs that set them apart from competitors. The company further expects to become one of the top three manufacturers of flat panel TVs in North America after expanding capacity at its plasma module and TV production plant in Mexico.
LG became a top seller of premium home appliances in North America in 2007 with its popular front-load washing machines and bottom-freezer, three-door refrigerators. This year the company will further increase supplies of its appliances to popular retailers that deal in high-end products.
With the recent addition of the largest retailer in the United States, Sears, LG now sells its products through all three of the top retailers in North America, which also include Best Buy and the Home Depot. LG will continue to expand its retail network as well as increase supply to current retailers. The company has demonstrated its already strong relationships with key retailers, earning best-supplier awards.
"I believe that 2008 will be our strongest year yet in North America and customers can look forward to seeing innovative new products in each of our product categories including flat panel TVs, home appliances, and mobile phones," Mr. Ahn added.
Back to Breaking News