LG has revealed its 2015 consumer electronics business strategy focused on leveraging LG’s industry-leading, value-added products to expand business opportunities in the United States and around the world.
At a VIP media roundtable during the 2015 International CES, Brian Kwon, the new Executive Vice President and CEO of the LG Home Entertainment Company, outlined the company’s TV technology, product and marketing plans for the coming year, aggressive strategies designed to further enhance LG’s competitiveness and profitability.
“We are determined to create further growth momentum in next-generation home entertainment business areas by providing innovative solutions and services,” says Kwon. “We will heighten LG brand’s profile in markets across the world by developing highly differentiated, world-class products, including our OLED TVs and ULTRA HD TVs. At the same time, we’ll enhance the convergence strategy allowing us to move toward integrating an array of new Internet of Things (IoT) solutions that will enable our customers to connect their TVs to multiple devices more seamlessly,” he says.
Addressing current global TV market conditions, Kwon noted that LG’s emphasis on product and cost competitiveness will put the company in a more favourable position to ward off increased competition from China and protect itself from the repercussions of the weaker Japanese Yen. “We’re implementing a series of marketing and product strategies to better position the LG in light of this intense competition.”
Kwon cited four overarching strategies designed to solidify LG’s leadership role in the home entertainment market: (1) leading the global OLED TV market, (2) expanding LG’s penetration in the 4K ULTRA HD TV market, (3) securing a dominant position in providing outstanding user experiences, and (4) strengthening the product competitiveness of its IT and AV product lines.
“In 2014, LG focused on gaining business momentum and positioning itself for the future by actively promoting our flagship OLED TV lineup,” says Kwon. “This year, we intend to significantly expand the market penetration of LG OLED TVs which have been receiving superb reviews as the next generation TV. LG OLED means perfect black, perfect colours and a breathtaking viewing experience. Collectively, our OLED technologies will propel us forward as a trusted leader in the global premium TV market.”
LG launched the industry’s first 4K OLED TVs in August 2014. Further demonstrating its technological capabilities for 2015, LG unveiled a slate of new OLED TVs at the 2015 CES, including 77-, 65- and 55-inch class models with curved, flat and flexible displays. LG is aiming to consolidate a global manufacturing system dedicated to OLED production in North America, Central and South America, Europe and Asia. Kwon noted that he is looking to increase the company’s investment in OLED technology and sister company LG Display has already injected KRW 700 billion into upgrading its manufacturing facilities to produce larger OLED panels as part of this effort.
At the same time, LG is focused on further improving the price competitiveness of its OLED TVs via the synergy created among LG affiliates, as well as with improved components and advanced manufacturing technologies, Kwon explained. Collectively, these endeavors will drive OLED TV sales growth and allow more consumers to experience the advantages of LG’s OLED technology over alternatives in the premium TV market. Meanwhile, LG will be expanding its OLED TV lineup, increasing supply to meet market demands and implementing an aggressive marketing strategy that includes strategic alliances with key retailers in each region.
At the 2015 International CES, LG is introducing the ColorPrime TV series. The series includes LG’s highly praised 4K ULTRA HD TV products, which boast an enhanced colour reproduction range, world class designs, rich sound quality and the company’s new, user-convenient webOS 2.0 Smart TV platform. The ColorPrime series also include 4K ULTRA HD TVs featuring Quantum Dot technology which further demonstrate LG’s commitment to bringing cutting-edge technology to consumers.
“Overall, CES is a great opportunity for customers to familiarise themselves with all of LG’s impressive 4K ULTRA HD TV offerings,” Kwon says. LG’s extended lineup includes display sizes ranging from 40 to 105 inches, and the displays themselves come in curved and flat variations, including highly innovative technologies that are setting LG apart from competing manufacturers.
With this in mind, LG plans to rapidly increase its global 4K ULTRA HD TV market share in 2015 and beyond. LG is also looking forward to strengthening its marketing capabilities via joint efforts among of its affiliates covering a comprehensive range of business areas, including R&D, product planning, sales and marketing.
LG’s new webOS 2.0 Smart TV platform, unveiled at CES 2015, is an upgraded version of the company’s highly successful original webOS platform. Kwon says this latest iteration is helping LG maintain its leadership in providing consumers with a user experience that is both compelling and ultimately rewarding. WebOS was initially designed under the “Make TV Simple Again” concept in an effort to counter the growing frustration with overly complex systems. LG’s webOS-enabled Smart TVs forecast to top 1 million mark in unit sales within the first half of 2015.
For 2015, LG is taking steps to revamp the structure of its home theater and video-related businesses to improve their profitability. These steps include enhancing marketing activities for high-end monitors such as the 21:9 UltraWide monitors, curved monitors and ULTRA HD display monitors. LG will also focus on improving the company’s growth momentum by actively marketing its new sound bars and multi-room audio products, which are steadily gaining in popularity among consumers. At the same time, LG will continue to seek new business opportunities by harnessing the company’s technological capabilities in IT convergence and IoT-based Smart Home innovations.
