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LG Electronics Romania aims to achieve EUR 140 M turnover in 2008

Interview with Han Khyu, President of LG Electronics Romania

How can you define year 2007 for LG Romania? The results achieved in 2007 confirm the high technology and inovative design incorporated in LG products, as part of the company’s involvement in offering products that enhance the consumers’ life quality. The sales turnover of LG Electronics Romania in 2007 has reached EUR 104 M, with 51 per cent growth compared to the previous year. The LCD TV segment and the mobile phone division registered both the biggest growth, being the company’s growth engine. In 2007, LG was had the first market share in various product categories on the local market, ranging from air conditioning, LCD monitors, or 42 inch Plasma TVs, to audio systems and optical storage. For 2008, the company aims to achieve the turnover of EUR 140 M. It depends on economic stability in this country, the increase of purchasing power of local people and the trade up of consumers etc. If we see the market optimistically, probably we can grow much higher than we are expecting at present. Also, in the first quarter we achieved EUR 36 M. Which were the most successful products? The overall sales results in the first quarter of 2008 registered a growth of about 60 per cent compared to the similar period last year. In the first quarter of 2008, the sales for Mobile phone division reached significant growth, LG brand entering the first three brands on the local market, with a market share of 10 per cent in February 2008. This position is a result of the brand awareness growth on the local market, sustained by the marketing investments and the partnership with the major local operators like Orange. The market share growth was based on the sales success of LG Shine and LG Chocolate, and the extended premium and middle range terminals. The best sales success was achieved by LG Shine in Romania, with 70,000 units sold on the local market since its launch in 2007 and LG Chocolate with over 50.000 sold units from its launch on the Romanian market. Furthermore, the sales of Prada by LG handset outrun our expectations, which mean that the market becomes orientated through mobile phone that brings, beyond technology, an exclusivist style. In 2007, the market shares for LCD monitors position LG as no. 1 brand, being the best sold monitor brand in 2008, with a market share of 25 per cent in the first quarter (units), market share maintained also in the second quarter. We estimate for 2008 a spectacular growth in wide series of over 20”, as LG is planning to enlarge the portfolio of wide format monitors with new smart techonology and stylish design. In 2008 Q1, the sales growth registered for plasma TV, secured almost half of the local plasma market for LG brand: 45% market share in units (in February 2008), positioning LG as no. 1 brand on the local market. LG’s 42” plasma TV had the best sales in Romania, being the most popular model on the market, with 41 per cent of market share (units) in February 2008. The same top position is for 50” plasma TV, with 44 per cent of market share in January – February 2008. For LCD TV, LG is among the top brands preferred by Romanians, with 20.5 per cent market share (units), by wich LG maintains the second position on the Romanian market. The sales growth for LCD TV was over 350 per cent in Q1 2008 vs. the same period last year. Moreover, LG is brand leader on the 20” LCD TV, with market share no 1 of over 21 per cent. For 2008 LG aims at reaching M/S no 1 both in plasma and in LCD TV. For Digital Storage and Audio Systems, the first market share in 2007 was also maintained in the first quarter of 2008. Moreover, LG owns the first market share on the air conditioning segment, with a market share of 17 per cent in 2007 and an estimated market share for 2008. For the Home appliances segment, products as microwave, vacuum cleaners and Side-by-Side refrigerators are among the top three brands as of the local market share. What is the main target of LG Romania for 2008? In terms of sales for 2008 we target some EUR 140 M turnover, while we are focusing especially on LCD TVs & Plasma TVs and GSM Mobile phones, where we are going to introduce new stylish premium design and differentiated smart technology; we are confident that they will be attractive products that will gain much popularity among Romanians. Also we are sustaining a consumer oriented, focusing on consumer insight, that would be able to support the no1 premium brand image and preference. Are you ready to face the tough competition on the Romanian market? Are there any ‘surprises’ in this regard? We are aware of the tough competition on the local market, especially for product ranges as mobile phones, LCD/plasma TV, home appliances. Our vision is to offer for each segment category the best products, endowed with the latest technology and stylish design, for modern consumers that desire products that best fit their way of living. The recent Romanian market is one of the fast moving emerging markets, which is why we expect the competition to be getting tougher in the near future. LG Electronics Romania brings competitive edge with its full range of smart technology products and elegant design, which can attract customers. We are confident that LG will continue to enjoy its business on the local market, together with Romanian consumers. Sursa: http://www.nineoclock.ro

Tags: market local share plasma quarter romanian units brand electronics first technology turnover romania design products sales mobile growth air

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