LG stands for Lucky Goldstar – the product of a merger of two South Korean commodities businesses – but over the decades with a steady stream of innovative consumer electronics and home appliances, consumers concurred with the conglomerate’s backronym that Life is Good.
LG Home Appliances (HA), the arm of the Korean giant, which makes refrigerators, washing machines and vacuum cleaners amongst other such appliances, clocked a turnover of Rs 6,500 crore in 2011, and expects to close the current year with a 30% increase, taking the top line in the region of Rs 8,500 crore.
Market Leader in Refrigerators and Washing Machines
LG is currently the market leader in both washing machines and refrigerators as per Gfk-Nielsen. For 2012-13, LG is targeting a turnover of Rs. 5000 crore in refrigerator segment. LG will launch flagship products across the home appliances category which will help in strengthening its product leadership.
LG has launched 33 new models in refrigerators. In televisions too, it is targeting the No 1 position in the Flat Panel TV segment with a 30% market share.
Samsung – a concern for LG
In India, Samsung has been flexing its muscle locally and capturing more of consumer mind share – riding on its successes in the mobile space – and with it a bit of market share, too. Samsung’s aggression in the mobile space has rubbed off on its appliances, although LG’s strong equity in home appliances holds it in good stead.
LG’s dependence on white goods is also a cause of concern for the brand, unlike Samsung which has managed to earn its spurs as an as an innovative and bestselling mobile phone brand. Recently Samsung overtook Nokia as the world’s highest selling mobile maker.
In the last few years, Samsung is catching up with LG especially in refrigerators. The Indian appliance space is synonymous with LG and Samsung. Some brands manage to represent the category and that is the case with these two.