South Korea-based LG Electronics reported that its U.S. appliance sales were up an estimated 15 percent in the third quarter. During the third quarter, appliances accounted for about 23 percent of total sales at LG.
The company said it has been gaining retail space for its higher-priced washers and refrigerators in the U.S. "We have significantly gained share in the marketplace due to the distribution strategy that we took on with Best Buy and all of our regional partners," Daniel Lee, director of marketing communications for LG's U.S. unit, said.
Overall, LG's said its digital appliance sales increased 18 percent in the third quarter, with most of the growth coming from exports of premium products such as a U.S. $3,000 side-by-side refrigerator with a built-in television.
Additionally, the company said it is planning to spend $300 million in the U.S. over the next 3 years to advertise its products. Mr. Lee said LG would likely study its distribution strategy next year as well.
Mr. Lee also said LG was considering its pricing in the wake of higher raw material costs. "There's a lot of talk about raw materials and oil prices going up and that could be a factor in possible price increases," he said. (Reuters)
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