LG Electronics launches high-end TV to boost image
Abdul Khalik, The Jakarta Post, Jakarta
South Korean LG Electronics launched on Thursday a new high-end television set here as part of efforts to boost the company's image and sales in the country.
The president of LG Electronics Indonesia, Young H. Kim, said the South Korean company was focussing on the production of advanced technology TV products as part of its strategy to create an image for LG Electronics as the leader of high-end television sets.
"With the image that we have mastered high technology, we believe it will make it easier to sell our products to Indonesian customers," Kim said during the launch ceremony.
The newly launched TV is called the LG XD Engine, which promises superior image quality. The 42-inch LG XD Engine is priced at Rp 45 million (about US$5,294). The TV also comes in 76-inch size.
"The world is moving toward digital (TV) technology. Korea, for example, has reduced drastically its conventional television production to be replaced by high-end products such as projection TV, liquid crystal display TV and plasma TV," said Kim.
The company predicts Indonesia's TV market will increase from 2.8 million units in 2003 to 3.3 million in 2004 and 3.7 million in 2005.
In 2003, conventional TVs accounted for 80 percent of the Indonesian market, while flat TVs made up 18 percent of the market. The remaining 2 percent of the market was made up of projection, liquid display and plasma TVs.
The company predicted that flat TVs and other high-end products would increase to 22.2 percent of the market in 2004 and 27.3 in 2005.
LG Electronics Indonesia hopes to increase its sales by 20 percent this year from 470,000 units in 2003. The value of its sales reached $290 million in 2003 and $250 million in 2002.
The company is also optimistic that its market share will increase to 25 percent in 2004 and 28 percent in 2005, from 18 percent in 2003.
Currently, the company is number two in the local conventional TV market with an 18 percent share, while it leads the high-end market in LCD and plasma TVs with a 50 percent market share.
LG Electronics Indonesia's general manager of sales and marketing, Sung Khiung, said the company had various strategies to meet the company's targets.
"We have a complete product line, especially in high-end products, to meet various demands for televisions. For example, we produce from 15-inch to 76-inch high-end television sets," said Sung.
He said the company planned to hold an exhibition and road show in several cities across the country, adding that 70 after- sales and service centers had also been set up throughout the country.
LG Electronics employs a total of 140,000 people worldwide, while its Indonesian subsidiary employs about 1,500 people.