LG Electronics to launch ‘Signature’ series in July

After establishing its brand image at low and mid-price points and amid growing competition, especially from Chinese brands, Korean major LG Electronics has made its premium foray and is set to launch its ‘LG Signature’ product series in India this July.

“India and the Middle East are the fastest emerging markets and India is very important for us,” Sean Yoo, Marketing Director, Brand Strategy, Global Marketing Office, LG Electronics, said in an interaction with visiting Indian mediapersons.

The ‘Signature’ series of products, with the tagline ‘Art of Essence’, is the company’s first premium foray and includes OLED televisions, refrigerators, washing machines and air-purifiers. The series was launched in March in the US and Europe, and in Korea this month. The company plans to launch the ‘Signature’ series in 20 countries this year. In India, LG Electronics plans to tap premium television channels, magazines and digital space to push the ‘Signature’ brand, which will be sold in its 650 brand shops, department stores and malls.

“About 50-60 per cent of our product line-up will be premium in India,” Sean Yoo said, adding that the biggest challenge was to cater to diverse consumer preferences across different regions of India. He, however, admitted that the premium market in India was just about 1-2 per cent, compared with 8-10 per cent in the US and Europe.

Asked why the company had decided on its premium foray after so long, Sean Yoo said apart from other reasons, it was also because Chinese brands were also looking at moving to premium products.

The ‘LG Signature’ series aims to offers a “state-of-the-art lifestyle for people with the most discerning sensibilities,” the company said. For instance, its latest W7 OLED TV has a ‘picture-on-wall’ design, one of the fridges has ‘auto door open feature’ which opens up when an individual approaches it.

“Our driving principle is to ensure that the essence of our products is preserved from idea generation through to the end-user experience,” said Brian Na, Executive Vice President & LG’s Global Marketing Officer.

LG Electronics, which has completed 20 years in India, said it held 35 per cent share in the country’s refrigerator and washing machine market, 30 per cent in microwave ovens, 24 per cent in flat panel TVs and 18 per cent in air-conditioners.

Smartphone wars unleashed by China are said to have affected sales of Korean brands, such as Samsung and LG Electronics. The latter’s consolidated revenues have declined in the past three years, from $52.20 million in 2014 to $49.96 million in 2015 and $47.92 million in 2016. “The mobile phone business is the most challenging,” admitted a senior company official, adding that this was a “rough period in the business cycle that would subside once the landscape settles.”

But, the biggest challenge in future will come from software-driven and data-driven companies, said Skott Ahn, President and Chief Technical Officer, LG Electronics.

“The future will be dominated by software, such as artificial intelligence (AI),” he said, adding that “future investment focus has to be on AI.”

(The writer was in Seoul at the invitation of LG Electronics)

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