LG aims to become No. 1 electronics maker in RI next year<\/p>\n
Reiner S., The Jakarta Post, Seoul<\/p>\n
South Korea's giant LG Electronics will continue to push
\nmarketing and promotion efforts in Indonesia next year despite
\nthe general election period, in a bid to become the top
\nelectronics maker in this country.<\/p>\n
\"We aim to become No. 1 next year,\" said Moon-Ik Jang, general
\nmanager for corporate planning at PT LG Electronics Indonesia
\n(LGEI), during a recent press tour at LG facilities here.<\/p>\n
He claimed that LG's washing machine and monitor products
\nalready hold the largest market share in Indonesia, while TV,
\nrefrigerator, air conditioner, and DVD player products were in
\nsecond position.<\/p>\n
\"We also want to see a significant jump in the sales of our
\nhandphone products,\" he said.<\/p>\n
LG, which entered the Indonesian cellular phone market in
\n2001, is currently ranked sixth in terms of sales volume.<\/p>\n
The company expected handset sales to increase next year with
\nthe launch of new models featuring the latest technology and
\ndesign.<\/p>\n
LG, however, acknowledged that 2004 would be a tough year in
\npushing promotion activities because of the general election.
\nSport events, for example, will be very limited during this
\nperiod. The company has been active in sponsoring sport events
\nand other social and cultural events in a bid to boost LG brand
\nawareness in this country.<\/p>\n
\"We just really need to be more creative now,\" Jang said. He
\ndeclined to disclose the size of the budget for next year's
\npromotion program.<\/p>\n
Jang said that winning the leading position in the Indonesian
\nmarket was a crucial part of LG Electronics' corporate goal to
\nbecome the global leader in home appliance electronics
\nand telecommunication equipment in the next 2-3 years.<\/p>\n
\"Indonesia is a very important market for LG,\" he said,
\npointing out that the country of more than 220 million people
\noffered a huge opportunity for electronics makers.<\/p>\n
\"The developing market is growing at an annual rate of 10
\npercent, while the global average rate is 3 percent,\" Jang said.<\/p>\n
LGEI plans to further expand its extensive distribution
\nnetworks to help meet the 2004 goal. Currently, the company has
\n15 branch offices and more than 578 dealers located in various
\nparts of the country. Most of the dealers are concentrated
\nin the heavily-populated island of Java, which contributes around
\n69 percent to the company's total sales.<\/p>\n
Jang said that the toughest area would be competition in the
\nTV market, particularly with the inflow of cheap products from
\nChina. \"The TV market is the toughest with so many brands,
\nincluding from China,\" he said, adding that new producers could
\neasily enter the industry as it did not require heavy investment
\nas compared to refrigerator production. \"But in refrigerator
\nwe're going very fast.\"<\/p>\n
He said that part of the strategy to win a greater share in
\nthe TV market here was to continue promote its high-end products
\nto boost image and increase brand awareness.<\/p>\n
Although the local TV market is 80 percent dominated by
\nconventional TV, LG is also playing in the high-end market. \"We
\ncalled it the bi-polar strategy.\" LG's toughest competitor
\nin the conventional TV market is Sharp, while in the high-end
\nmarket is Sony.<\/p>\n
Last month, LGEI opened its fourth TV production line at its
\nTanggerang factory in a bid to become market leader.<\/p>\n
The new US$1 million line is dedicated to producing 12,000
\nprojection TVs per year.<\/p>\n
LGE is capitalizing on its technological prowess in the
\nelectronics industry to gain greater market share worldwide.
\nWith a whopping $1.5 billion allocated for research and
\ninvestment in the 2003 investment plan, the company is truly
\ncommitted to continue develop promising next-generation
\ntechnologies and to secure global leadership in the core
\nbusiness.<\/p>\n
The giant electronics maker is at the forefront of home
\nnetworks, which represent the consumer electronics of the future.
\nThe company has already come out with digital refrigerator with
\nLCD (liquid crystal display), allowing users to shop online, make
\nvideo phone calls and watch TV broadcasts. Moreover, the Internet
\nTurbo-drum washing machine can download washing instructions for
\ndifferent laundry loads.<\/p>\n
LGE has completed development of Internet-accessible air
\nconditioners and microwave ovens and continues to develop new
\nappliances such as washing machines that have Internet access.<\/p>\n
LGEI's production target (units)<\/p>\n
Products 2003(E) 2004 2005<\/p>\n
TV 1.2m 1.4m 1.6m<\/p>\n
Refrigerator 730,000 1m 1.5m
\nRoom AC 70,000 100,000 200,000<\/p>\n
Import target<\/p>\n
TV 180,000 230,000 300,000
\nCD Rom 120,000 150,000 180,000
\nMobile phone 75,000 250,000 420,000
\nRefrigerator 25,000 35,000 30,000
\nWashing machine 250,000 325,000 410,000
\nRoom AC 75,000 120,000 125,000
\n_____________________________________________________
\nSource: LGEI<\/p>",
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