LG Electronics unveiled its ambitious plans to become one of the top two flat panel display makers in the world.
The company is aiming for 16 percent overall market share in flat panel TVs and sales of more than 21 million TVs in 2009. By category, the company plans to sell 18 million LCD TVs, giving it 15 percent market share, and 3 million plasma TVs, for 19 percent of the market.
Making the announcement in advance of CES 2009 from its headquarters in Seoul, LG also unveiled its vision and strategy for its newly launched Home Entertainment Company division, which will be responsible for products such as televisions, home theater systems, disc players and home audio.
LG aims to achieve over 18 million LCD TV unit sales, 15 percent market share
LG revealed five key initiatives designed to help achieve its ambitious business objectives for the LCD TV business in the wake of the global economic downturn.
First, LG wants to clearly differentiate in consumers’ minds the product benefits that the company sees as driving future growth of its LCD TVs, namely its expertise in LED backlight, wireless, broadband and TruMotion 240Hz technologies. LG also plans to extend its mid- and small-sized TV line to accommodate customers with diverse preferences and needs.
By reinforcing its brand identity with a new creative advertising campaign and employing diverse distribution channels from premium markets to mass merchandisers, LG’s strategy is aimed at maximizing sales in the environment of a shrinking market. LG’s two-front strategy will also enable the company to widen its consumer base while still maintaining its premium status.
LG’s third key initiative is the continued expansion of its supply chain management infrastructure. The company will also strengthen its partnership with panel maker LG Display to promptly and efficiently meet market needs and guarantee steady profits even in today’s difficult economy.
The company’s final priority for its LCD TV business is the expansion of its efforts in developing newer technologies such as OLED, 3D displays and touch screens, as well as investing in new areas, especially in the business-to-business sector.
Focus on profitability and sustainable growth for plasma module business
In plasma TVs, LG aims to strengthen its leadership by targeting increased profitability. LG plans to focus on the large-size flat panel display market where plasma TVs still occupy significant market share. The company is also increasing its focus in the business-to-business market, where plasma TV has shown strong growth potential in the commercial display category.
Following last year’s transformation of its PDP module A1 line into a solar battery production line, LG’s plasma TV and plasma module divisions will also merge in 2009 in order to eliminate costs and speed up execution, resulting in increased market share in the plasma sector.
Continuing Blu-ray leadership in audio-video products
For its audio-video business, LG plans to continue its Blu-ray leadership by strengthening networking features in partnership with online contents providers including Netflix, YouTube and CinemaNow.
LG will also focus on premium audio systems such as its Blu-ray home theater system. At CES 2009, LG plans to introduce its Pure HD Sound audio technology, which will be available in LG’s high-end audio products. This technology, which delivers sound as vivid and real as a live performance, is made possible through the company’s collaboration with high-end audio expert, Mr. Mark Levinson.