LG Elec to fend off challengers with tech supremacy: H&A Head Ryu   

LG Electronics Inc., the South Korean home appliance giant that is also the world’s No. 1 home electronics seller, is sure it can hold its market leadership despite Chinese appliance makers’ encroachment thanks to its technology supremacy, said its home appliance division head.

“We are keeping a close eye on the rising Chinese home appliance makers but we are confident in the race (with them),” Ryu Jae-chul, president and head of LG Electronics' Home Appliance and Air Solution division (H&A), said during a press conference held on Saturday as a sideline event at IFA 2023 in Berlin, Germany.

“We will focus more on achievements that can lead the industry and cement our position rather than just defending ourselves against the rise of our Chinese peers.”

Ryu’s comment comes as Chinese home electronics brands are aggressively seeking to expand their share in the global market.

In particular, China’s TCL Technology Group Corp.'s and Hisense's global TV market shares increased 1.5 percentage points and 1.3 percentage points on-year to 10.2% and 9.5%, respectively, in the first half of this year, ranking third and fourth after global No. 1 Samsung Electronics Co. and No. 2 LG Electronics, according to global technology industry tracker Omdia.

But LG Electronics expects that it will keep its lead in technology and price competitiveness despite China’s quick ascent. 

“We roll out innovative products, like the InstaView Oven, nonstop,” said Ryu. “We are also ahead in pricing competition thanks to LG Smart Park in Changwon, our lighthouse factory.”

Lighthouse factories are facilities powered by Fourth Industrial Revolution technologies, such as the Internet of Things, big data, artificial intelligence and robots.

LG Electronics’ H&A sales amounted to 29.9 trillion won ($22.6 billion) in 2022, elbowing out US appliance giant Whirlpool Corp. to become the global leader in the home electronics market.

BUILT-IN KITCHEN WITH ROOM TO GROW

While keeping its dominance in the overall global appliance market, LG Electronics will actively seek to expand its presence in the European built-in kitchen appliance market.

“We plan to leap to become the best in Europe, home to built-in kitchen appliances with a focus on the low-end and mid-range market,” said Ryu, adding that the company has already tested the demand for its built-in appliances in North America and Italy and is ready to take on Europe, which is crowded by big players.

The European built-in kitchen market was estimated at $24.4 billion as of 2022, commanding nearly 40% of the global built-in kitchen market, according to major market research company Euromonitor International.  

LG Electronics made inroads into Europe with Signature Kitchen Suite, a luxury built-in kitchen appliance brand, in 2018.

At IFA 2023, it debuted mass market-targeted built-in kitchen appliance models such as the InstaView Oven line.

THE MORE PLAYERS, THE BIGGER THE MARKET

The Korean electronics giant also welcomed German appliance leader Miele’s release of Aerium laundry cabinet, a clothing care system similar to LG Styler.

“Miele’s foray into the clothing care system market was a total surprise,” said Ryu, adding that it is expected to create a bigger market for clothing care systems.

“Miele is not a competitor but a partner for us, to together grow the market overseas.”

LG Electronics refuses to still be called a traditional electronics company.

It is currently transitioning into a platform-based tech company, and as part of such efforts, LG Electronics in July unveiled a new set of home appliances upgradable through its smart home ThinQ application under the “UP Appliances 2.0” brand.

It tech shift is expected to help it further widen the gap with its rivals in the global home appliance market.

Write to Ik-Hwan Kim at lovepen@hankyung.com

Sookyung Seo edited this article.