LG Indonesia Aims to Sell 2,000 Plasma TVs in 2005
Feb 23, 2005
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With a new production line for flat panel televisions with plasma technology on the horizon, consumer electronics producer PT LG Electronics Indonesia (LGEIN) has targeted to increase its plasma TV sales tenfold to 2,000 units, or about a third of 2005's estimated total market for the premium TV.
LGEIN, a unit of South Korean firm LG Electronics Inc., expects to start producing the exclusive plasma TVs in its factory in Legok, Tangerang regency, Banten, in the third quarter of this year, said LGEIN president director Kee Ju-lee.
"We will be producing plasma TVs in our new production line here, probably in the third quarter," Mr. Kee told The Jakarta Post.
He said that at the moment, sales would be targeted more at the commercial market, such as shopping malls, hotels, and office buildings, rather than individual customers.
Separately, Sung Khiun, LGEIN general and sales manager, said that this year's plasma TV market in the country was estimated to reach 6,000 units, and the new production line was expected to support the firm's target sales of 2,000 units.
"Last year, the market size was only between 2,000 and 3,000 units, and LGEIN's share was only 10 percent of the market at that time," Mr. Sung said. He also said that the new production line would allow LGEIN to cut plasma TV prices faster than its competitors.
Globally, product prices have declined steadily since last year. For example, a 42-in plasma TV was sold at around U.S. $5,000 in Indonesia early last year, while today the average price is no more than $4,000, Mr. Sung explained.
However, he expects LG plasma TV prices here to go down as far as $3,000 by the end of this year.
"We aim at taking a leading position in the category," Mr. Sung said, adding that the firm would focus more on producing and selling 42-in plasma TVs, which are the most popular in Indonesia.
Mr. Sung, however, dismissed the notion that Indonesia would be a plasma TV production base for Southeast Asia. Last year, LG Electronics Inc. revealed that its headquarters in Seoul would need to assess domestic market performance, before deciding on Indonesia as a regional production base.
Plasma TV sales are expected to help LGEIN reach its sales target of $450 million this year, or up 42 percent from last year's achievement. (The Jakarta Post)
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