Korean Companies Use Marketing to Increase Appliance Sales
Dec 13, 2004
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According to LG Electronics, sales of its Chinese affiliate is forecast to top U.S. $10 billion this year, up 43 percent from $7 billion last year. LG Electronics' sales in China increased two and a half fold in just 2 years from $4 billion in 2002.
"Strong sales in China is largely attributed to aggressive marketing campaigns and improved product quality, but we also reaped huge benefits from airing advertisements featuring Kim Hee-seon in China," Oh-Sea-chun, senior public relations manager of LG Electronics, said. "Kim currently appears on our advertisements of major home appliance products such as air conditioners."
LG Electronics is also expected to retain its largest market share in the Vietnamese home appliance market this year for 3 straight years, due to Asia's growing enthusiasm for Korean melodramas and films that made Korean entertainers and Korea stars. The company's air-conditioner market share in Vietnam reached 35 percent this year.
LG Electronics' premium white good appliances, such as Dios refrigerators, are gaining popularity in Japan, which features Korean celebrity Bae Yong-joon, or Yon-sama.
The company's share in the Japanese refrigerator market rose from 26 percent in 2002 to 33 percent last year and to 35 percent this year. Its share in the Japanese vacuum cleaner market also increased from 51 percent in 2002 to 65 percent this year.
Daewoo Electronics, which captures the largest refrigerator market share in Vietnam, plans to change its marketing campaigns in the Southeast Asian market to capitalize on the ongoing popularity of Korean pop culture and entertainers across Asia.
The company expects its share in the Vietnamese refrigerator market to rise by 5 percentage points to 35 percent this year.
Daewoo Electronics' sales in Japan increased by 25 percent this year, led by sales of vacuum cleaners, microwave ovens, and refrigerators. Its video and audiovisual equipment sales more than doubled in Taiwan this year. (The Korea Times)
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