LG Electronics records US$2.27 billion sales in 2005 in MEA
Global and regional digital leader LG Electronics recorded sales turnover of US$2.27 billion in the Middle East and Africa last year, an 8 per cent increase compared to 2004. The company dominated the TV, RAC (Residential Air-conditioners), OSD (Optical Storage Device), PDP and TV monitor categories, and LG Electronics maintained its position as the consumer electronics leader in the region.
LG’s Digital Appliance sales were US$970 million, followed by Home Electronics (US$795 million), IT products (US$320 million) and GSM handsets (US$185 million). The company’s biggest selling regional markets last year were South Africa, accounting for US$400 million in sales turnover. The Lower Gulf notched up US$300 million in sales, and Iran reported sales of US$309 million.
LG Electronics’ ambitious strategy in Turkey paid off with sales registering more than US$239 million. Jordan (US$165 million) and Morocco (US$130 million) were also two of LG’s fastest growing markets in the region last year.
“2005 was a challenging year for LG Electronics,” said K. W Kim, President of LG Electronics, Middle East and Africa Operations. “But the brand continued its impressive growth trend and maintained its leadership position for consumer electronics. Continued product innovation aimed at the unique customer needs of local markets will drive further sales growth, supported by sustained marketing initiatives aimed at bringing the LG brand to life. LG will also continue its valuable support of community initiatives.”
LG retained its market leadership in the TV, AC and monitor categories. TV sales registered sales turnover of US$295 million, and the PDP division recorded sales of US$136 million, a nine per cent increase compared to 2004.
LG was the world’s leading air-conditioner supplier for the sixth consecutive year in 2005, selling 10 million units, and securing a 20 per cent global market share. Leading Japanese market research consultancy Fuji-Keizai estimates that the global and regional digital leader made one out of every five air-conditioners sold in the world last year.
Regional sales of LG air-conditioners grew by 15 per cent last year accounting for US$404 million in sales turnover. Monitor sales grew 7.5 per cent to US$215 million, and optical storage devices (OSD) sales increased 27 per cent to US$75 million.
LG Electronics sold vacuum cleaners worth US$27 million in the Middle East and Africa last year. Audio and video products accounted for US$94 million and US$72 million in sales respectively.
“In the Digital Media Division, PC and laptops continued their march towards the number one position in the region. LG sold notebooks worth US$53 million last year; a 112 per cent increase compared to 2004. GSM sales reached US$185 million, an increase of 15.6 per cent compared to 2004.”
LG Electronics has earned increasing market share by introducing market-specific, niche products like the Qiblah phone, the world’s first mobile handset with Qiblah direction and Azan alarm functions; the TV refrigerator; the Swarovski Crystal refrigerator; and the bag-less Cyking range of vacuum cleaners.
“Value creation for customers is a focal point of LG Electronics. For 2006, LG will target overall regional sales of US$2.7 billion, making for 20 per cent growth compared to 2005. We will be guided by LG’s global ‘Blue Ocean Strategy’, which aims to create genuine differentiation for the brand.”
LG Electronics plans to double global sales volumes, and profit and shareholder benefits by 2010. The company’s Blue Ocean strategy will focus on products offering the maximum growth potential, market share and profit generation. Blue Ocean products will generate around 30 per cent of sales and 50 per cent of profits by 2010.
LG Electronics’ marketing strategy for 2006 will place greater emphasis on young people and women in the region. “LG Electronics aims to become the top national brand by putting people’s needs and aspirations at the heart of its business. We will continue to introduce products that serve genuine and relevant customer needs,” adds K.W Kim.
- Profiting off people's boredom? Cable television brings Kuwait's KIPCO profits up 75%
- LG on track to achieve ambitious MEA sales target of US$3.3 billion for 2007
- First half LG sales turnover in Mid-East and Africa touch US$1.36 billion
- Over 1 million LG TV’s shipped to MEA countries in Q1 2008 - Digital leader records 38.2 per cent growth over 2007 shipments
- LG Electronics targeting sales of US $300 million in handsets in Middle East and Africa region