Daewoo Electronics Plans to Expand Domestic Business
Jan 8, 2004
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The U.S. sales arm of reorganized Korean technology company Daewoo Electronics expects to expand its domestic business in 2004, but will wait 1year before starting a major national promotion to support new products, Chul Lee, the company’s CEO, announced.
Mr. Lee also said that the company will continue manufacturing electronics for other companies to sell under Daewoo's brands, but it intends to shift its focus to making Daewoo-branded video products, including plasma and LCD televisions.
"I think this is a good time to rebuild our business and build up our name in the market," Mr. Lee said.
Daewoo Electronics, facing competitive pressures and heavy debts, restructured its business in late 2002 to begin marketing Daewoo-branded products, essentially starting over after 31 years in the electronics industry.
While plans call for a number of new product introductions this year, Mr. Lee said he was more concerned with building the business in 2004 than promoting it.
"At this moment, we think we need more channels of distribution first," Mr. Lee said. "We are not ready to do (national advertising)."
The company sold a 42-in plasma screen at some major national retailers in 2003 and plans to offer 50-in and 60-in models in 2004. It also plans to branch into LCDs as big as 40 in, executives said.
Mr. Lee said Daewoo would also pursue combination devices, such as DVD-VCR units and DVD-digital video recorders.
"That kind of combination is more efficient in the market," Mr. Lee said. (Reuters)
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