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South Korea’s LG seeks to be the Philippines’ top electronics brand


Indian models show off LG phones during a 2007 launch. The South Korean company will be expanding its market reach in the Philippines to make it the country’s top consumer electronics brand. AP Photo
CEBU CITY - LG Electronics Philippines, Inc. is expanding its market reach and pursuing an aggressive marketing campaign to make LG the top consumer electronics brand in the country next year. While other companies are holding back because of the global economic slowdown, LG Electronics Asia president Woody Nam said they were investing more in strengthening the brand and providing better support for customers in the regional areas. “This is a difficult time. Sales and profits are down. But it’s an opportunity for us. We believe that if we invest now, while the competition is not investing, we will get the most benefits. We aim to be No. 1 in all products," Mr. Nam said. LG ranks third among consumer electronics brands in the Philippines. Its LCD television captured 16 percent of the market as of last month, eight times more than the 2 percent share last year. The target is to increase this further to a third of the market next year, Mr. Nam said. In the mobile phone sector, LG holds 2 percent to 3 percent of the market. As other brands retreat because of the global recession, LG Electronics Philippines president Lee Seung Chul said his firm would be more aggressive in penetrating the market to capture at least 10 percent next year. “We don’t have a tangible market share yet because we’re a latecomer [in the mobile phone segment]. But we believe that it won’t take a long time for LG to become a very strong brand," Mr. Lee told BusinessWorld. LG will push LCD television and mobile phones although other products from the home appliance, audio/video and information technology lines will also be marketed aggressively, he said. LG boasts of having achieved a balance between “stylish design and smart technology" in its products. The company is reestablishing its foothold in the regional markets by opening a service and marketing hub in Dagupan to serve Northern Luzon and a similar facility in Cebu to serve the Visayas. Another service center will be set up in Davao for the Mindanao market before the year ends, Mr. Lee said. Similar facilities are also being planned in Bicol, Iloilo in Western Visayas, and Cagayan de Oro in Mindanao next year. The company shut down its manufacturing facility and regional centers in the Philippines earlier this decade in the aftermath of the 1997 Asian financial crisis. “We had to reorganize and retreat to Manila because we were affected by the crisis. It was a difficult situation then," Mr. Lee said. He said there were no immediate plans to reestablish a manufacturing facility here because production costs are not competitive compared with China, Thailand, and Indonesia. Recently, LG opened its first concept store at Robinsons Galleria, its first mobile concept store at SM Megamall, and the country’s first air-conditioning academy. - Marites S. Villamor, BusinessWorld
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