LG CEO Highlights Plans to Boost Company’s Presence in B2B Market During Visits to USA and Europe
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By News Reporter
Driving Business Portfolio Innovation to Maximize the Potential of Key Business Areas
and Advance B2B, Platform-Based and Emerging Ventures
SEOUL, Aug. 21, 2024 — LG Electronics (LG) is rapidly evolving into a “Smart Life Solution Company” by leveraging its decades of customer insight, manufacturing expertise and technological prowess as a leader in home appliances. As part of its mid- to long-term strategy, “Future Vision 2030,” LG is committed to ongoing transformation and growth.
On August 21, LG hosted an investor forum at LG Sciencepark in Seoul, bringing together domestic and international investors and analysts. During the event, CEO William Cho outlined the company’s progress and strategic direction since the announcement of Future Vision 2030 last year, emphasizing key achievements. The forum was also streamed live on
link hidden, please login to view. In addition to CEO William Cho, the event was attended by CFO Kim Chang-tae, CSO Lee Sam-soo and other top executives responsible for key business areas such as heating, ventilation and air conditioning (HVAC), webOS content & services and subscription business. The event aimed to communicate the progress and plans of LG’s mid- to long-term strategy directly to the market, ensuring greater transparency.
Following the announcement of the 2030 Future Vision and the shareholders’ meeting, LG continues to engage with the market and stakeholders through direct communication from the CEO and key business leaders, as demonstrated in this investor forum.
Under the Future Vision 2030 plan, LG aims to become a “Smart Life Solution Company” by connecting and enhancing customer experiences across various living spaces, including homes, commercial environments, mobility and virtual platforms. To achieve this, the company plans to accelerate the transformation of its business portfolio towards a more future-oriented model. The goal is to achieve the “Triple Seven” targets: a 7 percent average growth rate, 7 percent operating profit and an enterprise multiple (EV/EBITDA) of 7.
At the event, LG shared its interim financial progress under Future Vision 2030, revealing an 8 percent increase in revenue, a 6 percent operating profit and a fourfold growth in EV/EBITDA compared to the previous year, based on the first half of this year’s business performance (excluding LG Innotek).
“Over the past year, we have been steadily laying the foundation for achieving our future vision, and we take pride in creating ‘structural changes’ and ‘sustainable outcomes’ in various areas,” said CEO Cho. “With strong confidence and a sense of responsibility, we will continue to advance towards our goals.”
Four Strategic Directions for Business Portfolio Innovation
CEO Cho detailed LG’s approach to business portfolio innovation, focusing on four key directions: maximizing the full potential of existing key businesses, expanding platform-based service models, accelerating the growth of B2B and fostering New-to-LGE businesses.
The first direction of maximizing the full potential of current businesses involves a strategy to overcome the limitations of mature core businesses, such as home appliances and TVs. This includes integrating subscription services into its home appliance offerings and expanding direct-to-consumer (D2C) sales channels, providing customers with more choices and enhanced experiences.
CEO Cho explained that these efforts are leading to steady growth and profit generation in core businesses, which serve as cash cows for the company. Despite a double-digit decline in the Korean home appliance market, LG’s domestic appliance sales are on the rise, driven by the creation of new demand through subscription services. In addition, overseas home appliance sales have grown more than 1.5 times faster than the market average over the past three years, driven by expanded product and price lines and D2C sales.
Second, expanding platform-based service models focuses on leveraging the hundreds of millions of LG products sold worldwide as a platform to generate revenue from content, advertising and services. A prime example is LG Home Entertainment Company’s TV business, which aims to accelerate the webOS advertising and content business with the goal of transforming the company into a media and entertainment platform powerhouse. Since 2018, the annual growth rate of the webOS platform-based advertising and content business has reached 64 percent.
In terms of accelerating the growth of B2B businesses, LG is achieving significant results in areas such as vehicle components, HVAC and smart factories. These advancements are closely aligned with market inflection points like digitalization and electrification. LG aims to increase the B2B share of its total revenue to over 45 percent by 2030. The B2B share, which was 27 percent in 2021, has already risen to 35 percent in the first half of this year.
LG’s vehicle component solutions business has secured an order backlog exceeding KRW 100 trillion (USD 74 billion), with sales of high-value products like digital cockpits growing rapidly. The company is also expanding its global production footprint to support this growth. In the HVAC sector, LG leads the high-efficiency market with its advanced inverter and heat pump technologies, and it is actively targeting the cooling systems market for AI data centers, where demand is surging. LG also has plans to expand its smart factory business into industries with rising factory automation needs, such as semiconductors, pharmaceuticals, biotechnology and food & beverages.
The company continues to invest in promising new business areas that will serve as the foundation for future growth. In the commercial robotics sector, LG is focusing on securing AI-driven, software-defined robotics capabilities. For the electric vehicle charging business, LG is collaborating with leading global partners to seize business opportunities.
Portfolio Innovation Yields Emerging Unicorn Ventures
LG also highlighted the success and growth potential of key businesses that have become core engines of the company’s future growth, showcasing significant results from its portfolio innovation.
“Inspired by the term ‘unicorn’ used to describe ventures valued at over KRW 1 trillion (USD 740 million) in the market, we refer to new business models generating annual sales of over KRW 1 trillion (USD 740 million) as ‘unicorn businesses,’” said CEO Cho. “Our home appliance subscription service surpassed KRW 1 trillion (USD 740 million) in annual sales last year, securing its status as a ‘unicorn business.’ Additionally, several seed businesses, which are expected to become the next unicorns in the near future, are accelerating their growth.”
Home Appliance Subscription Business Achieves Unicorn Status
LG is pioneering a paradigm shift in the home appliance business by combining services with its home appliances through a subscription model. Unlike traditional product-centric models that generate one-time sales, the subscription model maintains ongoing customer relationships, offering optimized care services post-purchase, thereby generating continuous revenue.
Last year, the subscription business achieved KRW 1.134 trillion (approximately USD 840 million) in annual revenue, marking a 33 percent growth over the previous year and securing its place as a unicorn business. This growth is accelerating, with revenue expected to rise by nearly 60 percent this year to exceed KRW 1.8 trillion (USD 1.3 billion).
The rapid growth of LG’s home appliance subscription business is driven by its ability to meet diverse customer needs. Customers can lower their initial purchase burden and maintain their appliances in top condition with expert care services for the desired duration, with free services provided during the subscription period. Customer responses highlight the high value of the subscription business, with its share of LG’s domestic home appliance sales rising from 15 percent last year to over 20 percent this year.
webOS-Based Advertising & Content Business Set to Become the Next Unicorn
LG’s webOS-based advertising and content business leverages millions of devices worldwide as a platform to generate additional revenue streams. This year, revenue is expected to exceed KRW 1 trillion (USD 740 million), a fourfold increase compared to 2021. To sustain this rapid growth, LG is focusing on expanding its customer base, diversifying revenue models and strengthening business capabilities.
In platform businesses, the more devices that use the platform, the larger the business scale becomes. LG has sold approximately 220 million smart TVs over the past decade. In addition, LG licenses its webOS to external companies lacking their own operating systems, with non-LG brands having sold over 10 million webOS TVs. The webOS platform is also expanding beyond TVs to include automotive infotainment and smart appliances, with the company securing leading global OEMs as clients for its in-vehicle infotainment systems.
LG provides a variety of content via webOS, operating revenue models based on advertising and services. A prime example is LG Channels, a free, ad-supported streaming service offering over 3,800 channels in 29 countries. LG plans to diversify its services into high-growth areas such as gaming, personalized shopping and Transactional Video On Demand.
To bolster its webOS platform capabilities, LG plans to invest over KRW 1 trillion (USD 740 million) by 2027. The company will continue collaborating with more than 4,000 global content partners and expand tailored advertising solutions through its data analytics subsidiary, Alphonso.
Chiller Business Targets AI Data Center Cooling Market: On Track to Become a Unicorn in Three Years
LG’s HVAC business offers a broad portfolio, ranging from residential air conditioners to commercial systems for large buildings, schools, public institutions and industrial facilities. This is one of LG’s fastest-growing core businesses, driven by market trends like decarbonization and electrification.
The chiller business, which provides cooling solutions for large buildings, has seen new opportunities as global tech giants increase demand for data centers amid the AI boom. Over the past three years, LG’s chiller business has achieved an average annual growth rate of over 15 percent, with overseas sales more than doubling during the same period.
LG plans to leverage its extensive experience in supplying chillers to power plants, data centers and other facilities, along with its high-efficiency core technologies, to actively target the data center cooling market. In addition, LG is preparing to commercialize new solutions, such as liquid immersion cooling, which are gaining traction in the market.
“By 2030, 50 Percent of Total Sales and 75 Percent of Operating Profit Will Come from B2B, Platform-Based and New Businesses”
To achieve its mid- to long-term goals outlined in Future Vision 2030, LG will consistently drive business portfolio innovation. The company aims to generate 50 percent of total sales and 75 percent of operating profit from three key focus areas: expanding platform-based services, accelerating the growth of B2B and nurturing New-to-LGE businesses.
“These goals are rapidly becoming a reality,” said CEO Cho. “We will ensure that LG’s new value proposition is recognized by all stakeholders, securing sustainable growth and profitability over the long term.”
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* Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate for the six-month period of the year 2024 — KRW 1,349.55 per USD.
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By News Reporter
Featuring Advanced AI Technologies and Sleek Design, Company’s Expanded Lineup
of Built-in Appliances Brings Outstanding Convenience and Style to the Kitchen
SEOUL, Apr. 18, 2024 — LG Electronics (LG) is unveiling its latest built-in kitchen appliances at Milan Design Week (MDW) 2024, taking place in Milan, Italy, from April 16-21. At the center of LG’s Milan showcase are the brand-new Signature Kitchen Suite built-in oven, free zone induction hob and downdraft hood. Boasting innovative, premium design and highly-convenient features, the company’s refined built-in solutions bring exceptional ease-of-use and effortless elegance to the kitchen.
Signature Kitchen Suite Built-in Oven with Advanced Cooking Technologies
Debuting at MDW 2024 and designed with European consumers in mind, the Signature Kitchen Suite 60-centimeter (24-inch) built-in oven offers a variety of cutting-edge features and AI technologies to elevate the culinary experience. Equipped with Gourmet AI, the oven can identify what the user is cooking and automatically select the appropriate cooking mode from 130 recipes. Gourmet AI also enables ‘browning’ control for foods such as pizza and steak, actively keeping tabs on the cooking process and notifying users via the ThinQ app as soon as their food is done. Thanks to video-recognition, LG’s intelligent oven can suggest the optimal settings for the dish being prepared, while real-time video monitoring and time-lapse recording make it easy to check on the progress of one’s meal using the ThinQ app.
Employing enhanced ProBake powered by inverter technology, the new oven delivers uniform heat and fast, efficient cooking with an A++ energy rating. LG’s innovative technology rotates the convection fan back and forth to ensure shorter preheating times, even heating and crispier results when using the oven’s Air Fry mode. The company’s unique InstaView technology further enhances user convenience, making it possible to see inside simply by knocking twice on the oven door.
Free Zone Induction Hob for Convenient and Flexible Cooking
The Signature Kitchen Suite’s 90-centimeter (36-inch) free zone induction hob presents next-level flexibility and ease-of-use, allowing users to place any size and type of cookware – such as Paella pans and moka pots – anywhere on its cooking surface.* The new appliance can detect and track the position of cookware, eliminating the need to manually cancel and reapply settings when moving a saucepan or skillet from one part of the cooking surface to another. What’s more, the AI technology embedded in the hob can detect the temperature of cookware and automatically lower the heat when necessary, helping to minimize spills and splatter when boiling water or preparing soups and sauces.
Expanded Built-in Lineups for Diverse Kitchen Lifestyles
LG is further bolstering its built-in product lineup with the introduction of the new Signature Kitchen Suite downdraft hood. Made to integrate seamlessly into islands and countertops, the 90-centimeter (36-inch) hood offers a sleek, sophisticated look with its chic black glass and modern frame design. It also provides powerful ventilation, effectively extracting steam and odors for a more pleasant cooking experience.
Additionally, LG has expanded its portfolio of built-in appliances for the European market. Along with new products, such as an 80-centimeter (30-inch) induction hob and built-in combi refrigerators and microwave ovens, the company now provides a wider range of options within its oven lineups – from more product variation to a greater choice of colors and sizes. Among the new models are the Signature Kitchen Suite 122 centimeter (48 inch)-wide French-door refrigerator and stunning appliances from the Transitional lineup, featuring slim handles and satin stainless steel exteriors with a velvety matte finish. To help customers create a curated kitchen aesthetic, the company offers an array of new finishes for its premium built-in products, with black stainless steel and stainless steel joining the previously-introduced black glass finish.
“We are thrilled to showcase our latest built-in innovations at this year’s Milan Design Week, demonstrating our commitment to leading new design trends and meeting the diverse needs of European customers,” said Lyu Jae-cheol, president of LG Electronics Home Appliance & Air Solution Company. “LG will continue to strengthen its presence in Europe through an expanded range of built-in appliances delivering style, performance and convenience in the kitchen.”
Visitors to MDW 2024 in Milan from April 16-21 can experience LG’s latest built-in lineups at the LG booth at Milan Fairgrounds.
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* Cookware recognition may vary depending on the size or number of items placed on the surface.
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By News Reporter
Greener Products, Carbon-Neutral Booth Design
Help Deliver ‘The Better Life You Deserve’
LAS VEGAS, Jan. 6, 2022 – Environmental sustainability is front and center at CES® 2022 in the 2,044 square meter LG Electronics booth, which was constructed entirely of upcycled, recycled and recyclable materials. For its zero carbon CES 2022 booth, LG worked with sustainability leader
link hidden, please login to view to neutralize 100 metric tonnes of emissions through carbon credits covering all estimated carbon emissions related to the booth’s transportation, fabrication and onsite electricity use. The unique booth concept, which seamlessly connects visitors from the physical space to LG’s digital experience leveraging both virtual and augmented reality, features a series of kiosks where visitors can experience how LG seeks to elevate all aspects of daily life though technological and design innovation. Consistent with LG’s CES theme for 2022, The Better Life You Deserve, the sustainable exhibit was constructed entirely of recycled oriented strand board (OSB) plywood made by compressing wood scraps, and eliminating use of glue, paint and varnish. The exhibit design was simplified to facilitate easy recycling after the trade show.
This week at CES, where LG is unveiling dozens of new ENERGY STAR® certified home appliances, home entertainment products and IT devices, the company is highlighting its broad sustainability commitment, including eco-friendly product and packaging designs, greener production processes and reductions of hazardous substances. During its CES , LG discussed how its products are becoming more eco-friendly throughout their entire lifecycle – from development, production and delivery to installation, use and disposal. Among other things, LG has pledged to use more than 500,000 tonnes of recycled plastic in its manufacturing process and increase electronic waste recovery of more than 7 million tonnes by 2030.
At CES, LG also announced its million-dollar Life’s Good Award, which will recognize innovation to minimize environmental impact by pursuing zero waste and closed-loop systems, while reducing greenhouse gas emissions and addressing climate change.
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By News Reporter
LG Commits to Fostering Worldwide Expansion of the Esports Industry
and Reputation of Acclaimed UltraGearTM Gaming Monitors
SEOUL, Jan. 11, 2021 — LG Electronics (LG) is once again making its presence known in the fast-growing global esports industry with a partnership with Gen.G Esports (Gen.G), one of the biggest esports organizations in the world. Gen.G and LG will collaborate to further develop the esports scene internationally with the help of LG’s category-leading UltraGearTM gaming monitors.
Ranked sixth in Forbes’ list of The Most Valuable Esports Companies 2020, Gen.G owns and operates eight professional teams from the United States, South Korea and China – widely considered important esports markets in the world – with each team specializing in a massively popular multiplayer game such as League of Legends, Overwatch and PlayerUnknown’s Battlegrounds. Gen.G also runs the Gen.G Global Academy that provides innovative esports education programs and fosters the development of future gaming and esports industry leaders through the Gen.G Foundation.
LG has already garnered a strong reputation among gamers for its impressive line of UltraGear gaming monitors. The partnership with Gen.G allows LG to demonstrate its support for the gaming community, especially among Millennials and Generation Z. LG’s market-leading UltraGear monitors offer the picture quality, speed and features needed to get the most out of the latest PC and console titles with the world’s first 4K resolution display and Nano IPS display technology with a Gray-to-Gray (GTG) response time of 1ms.*
“With a young and dynamic brand such as LG UltraGear as our partner, we look forward to providing the ultimate gaming experience to not just professional players but to gaming fans across the globe,” said Chris Park, CEO of Gen.G Esports. “Based on our common objectives and values, I’m excited about the diverse possibilities this collaboration will deliver to our fans and customers.”
“This partnership gives LG the opportunity to actively supporting the gaming community while our stellar 2021 LG UltraGear lineup will allow Gen.G’s elite players to perform at their very best,” said Jang Ik-hwan, senior vice president and head of the IT business unit of LG Electronics Business Solutions Company. “We’re proud to play a role in fueling the growth of the exciting world of esports and delivering the ultimate gaming experience through our exceptional gaming monitors.”
The 2021 lineup of LG UltraGear gaming monitors will be on display in
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* Model 27GN950
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By Alex
LG Electronics is partnering with TheTake, a video commerce technology company, to launch shoppable advertising on its webOS smart TVs.
Beginning this spring, LG smart TV owners will be able to shop directly through content using TheTake’s proprietary technology that identifies and tags different products within episodes of television and movies. Along with LG, TheTake is also working with programmers including WarnerMedia, A+E Networks, Crown Media Family Networks, NBC Universal and others.
“Shoppable video has been talked about since the days of Rachel’s sweater on ‘Friends,” said Tyler Cooper, co-founder and CEO of TheTake, in a statement. “Previous solutions haven’t addressed the long tail opportunity where each individual viewer wants to shop for something different. Shoppable video isn’t just about Rachel’s sweater, but also Chandler’s jacket, Joey’s sunglasses, Monica’s couch and so on. To address the full breadth of consumer interest, we leverage machine learning to make more than 500 products shoppable in a given episode of television. We’re excited to bring our AI-powered solution to viewers with LG and our various content partners.”
“The ability to seamlessly shop for the items we see in our favorite shows and movies is something we’ve long wanted to bring to LG smart TV users,” said Michelle Fernandez, head of home entertainment brand marketing for LG Electronics USA, in a statement. “Now, in partnership with TheTake, we’re introducing the feature on LG’s 2020 smart TVs for the easiest and most consumer-friendly experience for shopping the looks from TV and movies.”
The AI-powered shoppable ad feature will be available on all 2020 LG OLED, LG NanoCell and UHD smart TVs with the webOS smart TV platform.
TheTake also said that it has negotiated an agreement with a large U.S. MVPD to roll out the technology across millions of set-top boxes later in 2020.
The shoppable advertising from LG will likely be similar to NBCUniversal’s ShoppableTV ads, which direct viewers to e-commerce and online shopping sites via their mobile devices. NBCU also released some data claiming that the average conversion rate on ShoppableTV is almost 30% higher than the industry benchmark for e-commerce conversion and that the ads are driving fan acquisition in the double digits along with a 10% growth rate on social media.
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