LG Electronics Continues to Make Performance with Its Innovative Products

Nov 28, 2017

LG Electronics is writing a successful story through its ‘innovative product’ strategy. Many of its innovative products such as Styler (clothing care system), TONE Plus, OLED TV, and Twin Wash are enjoying their own positive streaks in their markets. LG Electronics recently caused sensation in beauty appliance markets through its home beauty device called ‘LG Pra.L’.
According to distribution industries on the 27th, ‘LG Pra.L’, which was released at the end of September, is completely sold out on home shopping channels. It is drawing huge amount of popularity as orders are piling up on distributors such as ‘LG Best Shop’.
Price of LG Pra.L set, which is composed of Derma LED Mask (LED mask), Total Lift-Up Care (elasticity care), Galvanic Ion Booster (Acceleration of absorption of cosmetics), and Dual Motion Cleanser (cleansing), is around $1,832 (2 million KRW). LG Pra.L is also called ‘Lee Na-Young Mask’ as she is the advertisement model for Pra.L. After 1,000 sets of Pra.L were sold out on the first day of its sale on home shopping channels, it is also drawing popularity from online shopping malls and department stores. After initial supply was gon,e LG Electronics quickly started producing additional supplies.
Some of global businesses such as Philips and Panasonic and small and medium South Korean companies entered beauty appliance markets. However they are having difficulty in sales as markets have yet to be formed. Level of interests from consumers towards beauty appliances has risen as LG Electronics entered this market.
“Although we cannot disclose accurate amount of sales as it is still early, we are definitely selling our products at a speed that is faster than our expectations.” said a representative for LG Electronics. “Even small and medium companies that already entered beauty appliance markets earlier than we have are expecting that these markets will quickly grow due to Pra.L.”

LG Electronics’ models are introducing home beauty appliance ‘LG Pra.L’. <LG Electronics’ models are introducing home beauty appliance ‘LG Pra.L’.>

LG Electronics is making home appliances that were not available in the past. Besides LG Pra.L, LG Electronics has been leading markets through many innovative products such as Styler, Earphone TONE Plus, Twin Wash, dryer, and cordless cleaner that has a motor near its handle.
Over 20 million units of ‘TONE Plus, which is the world’s first neckband Bluetooth ear set, were sold globally. OLED TV is leading premium TV markets by causing a revolution in TV quality. Cordless cleaner with a motor near its handle that was introduced this year caused cordless cleaner markets to be reorganized based on this type of cordless cleaner and there are not enough stocks of these cordless cleaners on markets. Styler pioneered new areas of home appliances. Mini wine refrigerator for households has high level of satisfaction amongst wine lovers. LG Electronics is planning to continuously introduce new products such as beer maker for households in next year as well.
Strategy of making products that were not available in the past is a driving force that increases competitive edge of LG Electronics. It has helped LG Electronics to target areas that are different from its competitors and to grab upper hands in markets.
Operating profit ratios for H&A Business Headquarters and HE Business Headquarters, which are responsible for home appliance and TV businesses respectively, came out to be 9.4% and 9.0% respectively at the end of third quarter. Their operating profit ratios that almost reach double figures dominate its competitors.
Vice-Chairman Cho Sung-jin of LG Electronics is leading the strategy that is based on making products that were not available in the past.
“We need to switch to business ways that can create profits through development of leading products that promote premium brands and provide new values.” said Vice-Chairman Cho at this year’s New Year Address. “Let us focus on quickly expanding products such as OLED TV, Twin Wash, Styler, Gram PC, and TONE Plus that only belong to us.”
Staff Reporter Kwon, Keonho | wingh1@etnews.com

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