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Home sweet home

Staring at the soaring LG Twin Towers from the streets of downtown Seoul, it may be hard to believe that this bellwether of South Korean and global technology started out in a rather unthinkable way.

The structure is home to the headquarters of LG Corp, one of South Korea’s prominent players in the global industry. Sixty companies make up its holding structure’s three main areas: Electronics, which includes LG Electronics and LG Display; Chemicals, which includes LG Chem and LG Household & Health Care; and Telecom & Services, which includes LG U+ and LG CNS.

One of the most burgeoning units of LG — and also one of the most popular in the world — is its LG Home Appliances under the LG Electronics wing. Thousands upon thousands of refrigerators, washing machines, microwave ovens, vacuum cleaners, compressors and motors are being manufactured by LG Home Appliances daily, making it a very key component of the company.

The company boasts of several firsts in South Korea’s home appliances industry, and several major awards to go along with these.

Robust growth

In 2011, LG Home Appliances posted sales of 11.1 trillion won ($10 billion), with a compound annual growth rate of 10.6 per cent — despite the global economic downturn. This makes up a good chunk of LG Electronics’ global revenue for the year, which hit 67.8 trillion won.

Operating on almost every continent, LG Electronics has 117 operations all over the world, powered by more than 91,000 employees. The strategy behind this is simple: it enables the company to get closer to local communities, know what each region needs and come up with products most suited for them.

In a special meeting with select media from the Middle East, Moon-bum Shin, executive vice-president and chief executive officer of LG Electronics’ Home Appliance Company, conveyed his thoughts on the region, and what is to be expected from LG.

“We must prepare for the future and be ready to give what the customers need,” he said.

In response to a question fielded by Khaleej Times, Shin said the Middle East — with its discerning consumer market — deserves the best in home appliances.

“The Middle East is a very interesting and very unique place,” he said. “But we must make sure that we are launching the right products, that is why we are conducting studies to ensure that the market there will get what they need and want.”

Shin said that LG Home Appliances is targeting a growth rate of over 20 per cent in the Middle East, and that this figure is “well on track”.

“Our growth rate in recent years is better than others… and we will do our best to continue being so by trying to be a premium brand.”

He said that LG is very focused on making products with smart and green technology, combining high efficiency, energy saving and high performance. To achieve this, LG will be investing five per cent of its total revenue to research and development, an area which Shin believes is essential for providing better products to customers.

A very humble, unlikely start

“To prepare for the future, we need to continue developing technology… so we can offer what our customers need,” Shin said.

And speaking of the future, maybe no one would have foreseen what LG has achieved in the present. Back in 1947, the Lak Hui Chemical Industrial Corp was established. Pronounced as “lucky”, Lak Hui made a face product called Lucky Cream. Koo In-Hwoi, the company’s founder, chairman and then-president — inspired by a radio and challenged by making one of his own — took it a step further by sowing the seeds for the South Korea’s electronics industry with the founding of GoldStar in 1958.

Both companies would eventually merge into Lucky-Goldstar and, in 1995, would carry the name LG. Today, Lak Hui is LG Chem and GoldStar is LG Electronics.

LG has a vast network of production facilities and research and development centres in South Korea and around the world. Its Home Appliances Company alone boasts 15 production sites in 11 countries, enabling it to gain local insights to customers’ needs.

“Our overriding priority, at all times, is to develop smart products that help consumers improve their lives and achieve greater control over their own homes,” according to the company’s official brochure.

Curiosity would eventually meet its match; a visit to its manufacturing facility in country’s south-eastern city of Changwon alone would leave you in awe.

Greeting you at the heart of the plant are numerous production lines, man and machine perfectly blending to come up with thousands of washing machines daily. From scratch to ready-for-shipment boxes, one thing is certain: it’s an undertaking worth observing.

“It will be noisy inside,” Dong-myoung Park, senior manager at LG’s washing machine production division, said before entering the main production hall. “But we will make sure everything is explained to you through your headsets.”

No need, probably; if action speaks louder than words, then this plant screamed volumes.

Asked by Khaleej Times, a worker, who declined to be named, said that while there is a lot of work to be done everyday, “we make sure that everything goes well” into the washing machines.

But it all doesn’t end there; rather, start there. At the LG Design Centre, Joong-san An, manager of the Home Appliances Design Lab, said that they won’t stop at anything and give their best to make sure all of its products are well-rounded.

“We have a dedicated team of design experts helping each other out… sometimes it takes us up to several months or a year to come up with something, but it doesn’t matter, as long as it turns out right,” he said. “The important thing is we meet customers’ requirements… and we have fun doing it.”

So far, LG Home Appliances have launched several products in the UAE this month, including the A Pioneer DID and Lancaster DID refrigerators, and the 16kg Spirit DDD and 18kg Rocky2 big-capacity washing machines. Coming up in October are more refs, including the Inspiration, as well as the Signature and Empire 1N, both of which have a four-door bottom freezer. Also in store next month are the 17kg Discovery2 WD and 13kg Noblige WD washing machines, refrigerator with chest freezer, the LG Styler and C&C Steam SolarDOM.

More to look forward to

And while having fun at it, LG remains serious about its commitment; it aims to be the most trusted provider of smart, eco-friendly home appliance solutions, which drive the company to focus on strengthening and expanding sales of its premium products.

LG Home Appliances has several new, innovative and unique products lined-up for their Middle East debuts. Back in the Press meeting, Shin was confident, excited and looking forward to this.

“We are expecting more demand [for smart products], and we are ready to take on this challenge,” he said.

In the UAE, consumers are to be introduced to new refrigerators and washing machines in the next two months. Aside from these, several other products are lined up in the near future, such as health care products, dishwashers and other smart appliances, such as the Smart Hom-Bot, a plate-sized vacuum cleaner that won’t bump into anything. Oh, and it even plays football over at the LG Science Centre.

LG Home Appliances products are made with several innovative technologies.

Clearly, there will be nowhere else to go but up for LG Home Appliances, given their proven track record and commitment to providing the best innovations. Certainly, life’s good, and it can only get better.

— alvin@khaleejtimes.com