The Korean digital manufacturer LG Electronics recently announced that it is planning a staged entry into the Middle East and Africa (MEA) GSM mobile segment as part of a campaign to further build annual sales by 16 percent this year, according to a company press release.
LGE reported $262 million worth of TV sales last year in the MEA region, up 11 percent on 2000, $106 million worth of monitor sales—a 23 percent annual increase, while regional optical storage product sales last year soared by 75 percent to stand at $28 million.
Both MEA monitor and optical storage sectors “recorded substantial growth largely due to the introduction of innovative products which are now setting competitive benchmarks in their segments… Sales gains were also achieved by consolidation of our IT distribution channel” President of LG Electronics Middle East and Africa Operations MB Shin said, according to a company press release.
New market products introduced to the region last year included two new LG Flatron models, the 17 inch and 19 inch E7008, which took the Korean company into the small-office, home-office (SOHO) segment for the first time.
According to Shin “Middle East buyers can be divided into two segments. The upper segment is well educated, discerning and desires fine products. These customers are well traveled and appreciate getting hi-tech products at the same time as their friends in other developed markets. On the other hand, there is a big segment that still prefers to stick to safe or value-for-money options.”
In the high-value product segment, LGE plans to focus efforts on its 15 inch, 17 inch and 20 inch LCD TV and monitor. “These products are currently selling very well and we wish to capitalize on this momentum,” he said. “We believe we have huge opportunities in this segment as currently 12 percent of all monitors sold worldwide are LCD monitors, whereas in the Middle East, LCD sales are only one percent of our total monitor turnover.”
IT sector business results helped LGE achieve an overall 15 percent increase in sales throughout the Middle East and Africa last year compared to 2000 with regional turnover reaching $949 million. IT sector gains were accrued from LGE’s introduction of a one-year warranty for its IT product line and a UAE-specific 30 day swap option on defective products.
“Last year a monthly average of 73 percent of our total orders were placed over our on-line service site,” explained Shin. “In 2000, it used to take 11 days to process an order and receive payment confirmation, this has now reduced this to just one hour during a normal business day.” — (menareport.com)
© 2002 Mena Report (www.menareport.com)
