LGE records 15 percent sales growth in MENA
LG Electronics recorded sales of $828 million throughout the Middle East and Africa last year, a rise of 15 percent on 1999, according to a company release. Televisions were LG's best-selling regional product line last year with sales in the region rising from $220 million in 1999 to $237 million. Air conditioners were the next top-selling line with regional sales jumping 19 percent to $151 million.
The Korean giant says it is looking for a further 15 percent rise in regional sales this year with the planned launch of new digital products. ”The digital era is reinvigorating the market with customers looking to replace analogue products with next generation technology," said M.B. Shin, president of LGE Middle East & Africa.
A further 26 percent sales increase in the air-conditioning sector is being targeted this year. "Given that the construction sector has been largely revitalized by higher oil prices, targets should be achievable," said Shin.
Acoording to company figures, LG also took the region's top supplier slot for monitors and CD-Roms with regional sales of monitors doubling last year to $86 million and CD-Rom sales rising 60 percent to $16 million.
In geographical terms, sales in the UAE grew 10 percent, in Saudi Arabia they rose 33 percent while in Tehran and Amman LGE recorded a 40 percent increase in business. "Sales in the UAE last year amounted to $38.3 million and we are looking to build that further this year by 43 percent," said Shin.
"In Iran sales are strong because we supply TV kits to a local Iranian assembler while Amman's growth has to be viewed in the context of this office controlling the Levantine and Kuwaiti markets," said Shin. "The Dubai branch figures of $88 million include the sales out of LGEGF, which is mostly re-exported. The Dubai branch is responsible for the UAE, Bahrain, Oman, Qatar and Yemen markets."
Among products LG is planning to launch in the region in the year 2001 are second-generation Flatron TVs, advanced MP3 products, new PDP products as well as an LCD projector. Regional product launches over the past 12 months have included the introduction of the 33-inch Flatron television, the twin deck CD player/recorder, the Turbo Rewind video recorder, new CD-Rom Drive and CD-Rewritable Recorder, a new 19" Flatron monitor, the Turbo Drum Direct Drive washing machine and hi-tech system air conditioners. — (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com)