(MENAFN- The Peninsula) The Korea Herald
Seoul: South Korean home appliance giant LG Electronics said Friday it would further develop strategies tailored to each country's consumption patterns and demand to deal with the aggressive global market penetration of Chinese rivals.
“Chinese firms have deviated from a low-cost strategy and are actively investing in each production region, while strengthening their products and brand power,” Kim I-kueon, vice president and head of home appliance and air solution business division at LG Electronics, said during the company's earnings conference Friday.
“In response to this, we are planning to come up with customised strategies for each country, comprehensively diagnosing the latest issues and firm's competitiveness country-by-country,” he added.
The company will decide on markets to focus on, considering the resource investment priorities, market size and the level of competition from Chinese firms, according to Kim's explanation.
“Although it might not be easy to secure profitability from our existing home appliance business alone due to intensifying market competition we will maintain the current level of profitability by upgrading our portfolio on fostering new growth engines, strengthening business-to-business segments, and promoting new businesses.”
The tech giant has also set its sights on generating over 40 trillion won ($29) in sales from its B2B operations by 2030.
LG's business-to-business sales currently account for more than 30 percent of the total this year.
Less affected by economic uncertainties than consumer segments, the B2B sector can bring stable sales and profit,
the home appliance maker
said.
The strategy dates back to July, when LG announced its goal to achieve 100 trillion won in yearly sales by 2030 by transforming itself into a“smart life solution company,” aiming to strengthen its core identity as a top home appliance brand.
Under the goal, the firm's CEO Cho Joo-wan suggested“accelerating business-to-business connections” as one of the key transformation schemes, alongside“innovating its business model in the non-hardware sector and exploring new business areas such as digital health and electric vehicle charging.”
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