LG is reportedly spending about $7 billion or five percent of its total revenue of $142 billion in research and development of premium products
LG Electronics plans to enhance the contribution of high-end product sales to 50 per cent from the current 30 percent of overall sales with a renewed focus on the segment and a series of fresh launches in India.
Speaking to journalists, Chris Jung, Senior Vice-President and Head of Sales Global Appliance, LG Electronics, said that the company believes that the Indian market has matured enough for premium products and people are willing to pay the extra money for quality products.
He believes that the revenue growth of LG Electronics in India “will be great”.
New LG products awaiting launch include: InstaView door-in-door refrigerators with a glass panel that illuminates the interior with two soft knocks on the glass door; twin washing machine that can simultaneously wash white and coloured clothes in separate tubs; a fast cool air conditioner with dual inverter compressor, and a dish-washing machine with steam.
The prices of these premium products will gradually come down as volume picks up, Jung noted.
In order to be able to compete with Chinese firms on their price competitiveness, LG is reportedly spending about $7 billion or five percent of its total revenue of $142 billion in research and development of premium products.
Jung said the recent hike in customs duty on LED panels in India would not have a significant impact on the company’s profit margins from the country.
The company is also setting up a manufacturing unit in the US which will start producing locally in a couple of months.
The company is currently focusing on products that can save energy and use internet of things to ease the pain point of customers and make their life easier, Jung told journalists.