LG Electronics has revealed its 2015 consumer electronics business strategy focusing on leveraging LG’s “industry-leading, value-added products” to expand business opportunities in the United States and around the world.
At a media roundtable during CES 2015, Brian Kwon, the new Executive Vice President and CEO of LG’s Home Entertainment division, outlined the company’s TV technology, product and marketing plans for the year.
“We are determined to create further growth momentum in next-generation home entertainment business areas by providing innovative solutions and services. We will heighten [the] LG brand’s profile in markets across the world by developing highly differentiated, world-class products, including our OLED TVs and ULTRA HD TVs. At the same time, we’ll enhance the convergence strategy allowing us to move toward integrating an array of new Internet of Things (IoT) solutions that will enable our customers to connect their TVs to multiple devices more seamlessly.”
Kwon cited four overarching strategies designed to solidify LG’s leadership role in the home entertainment market:
- Leading the global OLED TV market
- Expanding LG’s penetration in the 4K ULTRA HD TV market
- Securing a dominant position in providing outstanding user experiences
- Strengthening the product competitiveness of its IT and AV product lines
Let’s break them all down individually:
Leading the Global OLED TV Market
“In 2014, LG focused on gaining business momentum and positioning itself for the future by actively promoting our flagship OLED TV lineup. This year, we intend to significantly expand the market penetration of LG OLED TVs which have been receiving superb reviews as the next generation TV. LG OLED means perfect blacks, perfect colors and a breathtaking viewing experience. Collectively, our OLED technologies will propel us forward as a trusted leader in the global premium TV market.”
LG launched their first 4K OLED TVs in August. The company unveiled a slate of new OLED TVs at CES, including 77-, 65- and 55-inch models with curved, flat and bendable displays. LG is aiming to consolidate a global manufacturing system dedicated to OLED production in the Americas, Europe and Asia. Kwon noted that he is looking to increase the company’s investment in OLED Technology and LG Display has already injected $649.9 million into upgrading its manufacturing facilities to produce larger OLED panels as part of this effort.
At the same time, the company is focused on further improving the price competitiveness of its OLED TVs via the “synergy” created among LG affiliates, as well as with improved components and advanced manufacturing technologies, according to Kwon. Collectively, these endeavors will drive OLED TV sales growth and allow more consumers to experience the “advantages of LG’s OLED technology over alternatives in the premium TV market.” Meanwhile, the company will be expanding its OLED TV market, increasing supply to meet market demands and implementing an “aggressive marketing strategy” that includes strategic alliances with key retailers in each region.
Expanding 4K TV’s Penetration
At CES 2015, LG introduced the ColorPrime TV series. This includes LG’s 4K ULTRA HD TV products, which boast an “enhanced color reproduction range, world-class designs, rich sound quality and the company’s new, user-convenient webOS 2.0 Smart TV platform.” The ColorPrime series also include Ultra HD TVs that feature Quantum Dot technology.
“Overall, CES is a great opportunity for customers to familiarize themselves with all of LG’s impressive 4K ULTRA HD TV offerings.”
LG’s expanding lineup includes displays ranging in sizes from 40 to 105 inches that come in curved and flat variations.
With this in mind, the company plans to “rapidly increase” its global 4K ULTRA HD TV market share in 2015 and beyond. LG is also looking forward to strengthening its marketing capabilities via joint efforts among its affiliates covering a “comprehensive range of business areas,” including R&D, product planning, sales and marketing.
The company’s new webOS 2.0 Smart TV platform, unveiled at CES, is an upgraded version of LG’s webOS platform announced at CES 2014. This iteration is helping the company “maintain its leadership in providing consumers with a user experience that is both compelling and ultimately rewarding,” according to Kwon. webOS was initially designed under the ‘Make TV Simple Again’ mantra in an effort to “counter the growing frustration with overly complex systems.” LG’s webOS-enabled smart TVs is expected to top 1 million unit sales within the first half of 2015.
Strengthened AV, IT product competitiveness
For 2015, the company is taking steps to revamp the structure of its home theater and video-related businesses to improve their profitability. These steps include enhancing marketing activities for high-end monitors such as 21:9 UltraWide monitors, curved monitors and ULTRA HD display monitors. LG will also focus on improving the company’s growth momentum by actively marketing among consumers. At the same time, LG will continue to seek new business opportunities by harnessing the company’s technological capabilities in IT convergence and IoT-based Smart Home innovations.