LG aims to increase refrigerator sales

The Jakarta Post, Jakarta

PT LG Electronics Indonesia (LGEIN) expects to boost its refrigerator sales in this year's second half in a bid to get a bigger market share, from the recent 21 percent to 30 percent.

"We are currently in second place and are striving to minimize the gap between us and the market leader," LGEIN area sales manager Hendru Susilo said at the launching of LGEIN's latest Vitamin+ refrigerator on Tuesday.

At present, Sharp leads the market with 30 percent of all sales.

Hendru said LGEIN had dominated the market for top-down two- door refrigerators but only ranked third, in terms of sales, for one-door refrigerators.

To meet its target, the firm will offer new innovations to its one-door products.

"But we will also offer new products for the top-down refrigerators," he added.

According to Hendru, dominating the refrigerator market would be vital for the company as the product had contributed 21 percent to its total sales of US$330 million last year. Televisions are their top sellers as they contributed 32 percent to the firm's total sales last year.

LGEIN has also allocated $35,000 in investment in the development and production of refrigerators.

"While total investment this year is $635,000," Hendru said.

LGEIN product marketer for refrigerators, Eko Adhi Suyitno, said the domestic market this year would grow by 15 percent, or about 1.9 million, with the top-down demand remaining at 18 percent and one-door demand at reached 82 percent.

"There will be a huge demand for refrigerators for the Idul Fitri holidays. Our sales will drastically increase during that period," he said, adding that LGEIN would produce one million refrigerators this year, of which 50 percent would be exported.

Hendru said the company also aimed to cover the company's shortfall in achieving this year's sales target of $380 million.

Last month, LGEIN reported that for the first semester of 2005, its total sales reached $180 million, a 20 percent shortfall from the expected $200 million.

"We still have to recoup the remaining $200 million within the next few months," he said. (006)