LG puts a premium on its brand
Electronics giant aims to have third-largest market share this year
LG aims to be No 3 in the smart-phone market in Thailand this year. This is a part of the company's business direction with the aim to grow 15 per cent to reach total revenue of Bt25 billion. The home entertainment and IT gadget business units aim to grow 20 per cent.
LG Electronics (Thailand) marketing director Thunyachate Ekvetchavit said that home entertainment and IT gadgets account for 50 per cent of total LG Electronics revenue, the other 50 per cent coming from home appliances and air-conditioning. This year, LG will focus on these two business units with the strategy of offering premium display device products to capture the high-end segment across consumer markets.
"This year, LG is emphasising that we are a premium brand," said Thunyachate.
To achieve the goal, in 2013 LG will focus on "display devices", including TV and monitor (in home entertainment business unit), and smart phone (in IT gadget business unit).
"TV, monitor, and smart phone will be the three products we will focus on this year. We will launch TV with more than 30 product stock-keeping units in Thailand, especially TV equipped with 3D, In-Plane Switching, and organic light emitting diode [OLED] technology," said Thunyachate.
He said that this year, LG will launch a 55-inch OLED TV, a new version of 3D TV called "Cinema 3D", and a new version of smart TV in the Thai market.
"This year, we will focus on premium products. The contribution to revenue of LG premium products in Thailand would go up from 35 per cent last year to 40 per cent this year. This includes smart phones, which are 90 per cent of LG mobile phone," said Thunyachate.
LG also aims to have the third-largest market share in the smart-phone market in Thailand, from No 5 last year. Thunyachate said that by the first quarter of this year, LG together with Google would launch its flagship product Nexus 4 in the Thai market to capture the high-end smart-phone market with the latest innovation technologies, including True HD, IPS, and Gorilla Glass technologies.
The company still spends 5 per cent of total revenue, or around Bt1.25 billion, as marketing budget.
He added that apart from its products, LG this year would focus on outlet and service support. Currently, LG has 7 LG brand shops dedicated to LG home appliances and 6 LG shops dedicated to LG smart phones.
"We have 500 dealers, who altogether have more than 800 outlets nationwide, to bring our flagship products to reach our customers," said Thunyachate.
LG also offers "direct service" through its centres - 5 centres in Bangkok and 8 nationwide - plus 161 centres through its partner's channels.
LG achieved Bt22 billion total revenue in 2012. This year, it expects revenue to reach Bt25 billion with these business strategies.