LG eyes GCC production base
dubai — LG Electronics has set its sights to eventually build a production base in the GCC.
“Currently, we have no production site as yet in the GCC. We are constantly researching for opportunities in order to reach our customers in more efficient ways,” said Dan Oh, product manager of home appliances, LG Gulf.
Earlier during a press tour organised by LG Electronics to its headquarters in Seoul, another LG executive reiterated the need for a local production base to bolster its presence in the Gulf.
“The UAE and Dubai are our sales hub. Saudi Arabia and Egypt are also big markets. A local production base will increase our price competitiveness and make our products more affordable for consumers. Currently, the GCC and Middle East and Africa contribute 30 to 35 per cent of our revenues,” said Scott Jung, head of MEA/Asia sales and marketing division, LG Electronics Home Appliance & Air Solutions Company.
The tech brand is also tapping the African market for growth.
The drop in oil prices and sluggish economic growth have weakened GCC consumer sentiment. However, LG Electronics is riding on the demand for energy-saving products and technology in the GCC.
“Oil prices started falling in Q4 2014 to $40 to $50 per barrel. This led to a decline in demand. Governments in GCC have cut capital expenditure. However, the demand for energy-saving products is increasing. Countries are investing in more energy-efficient infrastructure. That’s how we are addressing the drop in demand,” observed Jung.
Meanwhile, LG Electronics has been constantly expanding its Internet of Things (IoT) line-up. But the company is quick to allay concerns about consumers’ data security.
“IoT-based smart homes are a key player to our growth. We will have nothing to do with private data. Sensors will collect data about user patterns and send it to the cloud. No personal information is collected,” clarified Jung.
Signature range
We are constantly researching for opportunities in order to reach our customers in more efficient ways Dan Oh, product manager of home appliances, LG Gulf
With the GCC hosting several high-net-worth customers, LG Electronics rolled out its ultra highend Signature range of home appliances for premium consumers in the region in August.
Following success in the US and South Korea, the brand felt the time was right to launch the Signature line in the Middle East and Africa.
The LG Signature product lineup includes two products from the home appliances category: the LG Signature TwinWash washing machine and LG Signature InstaView refrigerator.
For the Signature Refrigerator, LG has added a Knock-on feature where you can look inside the refrigerator without having to open the door. LG believes this will offer significant energy savings by limiting cold air loss.
Operating on Microsoft’s Windows 10, the appliance can also download and run a variety of apps from the Windows 10 store, including Allrecipes and Netflix. Now, users can follow recipes, listen to music and enjoy a movie all on their refrigerator door.
The device has multiple cameras that can capture images of the inside of the refrigerator and send it to the user’s smartphone anytime they wish to check their inventory.
The device is compatible with LG’s SmartThinQ technology, allowing users to control their refrigerator with their smartphone.
“The regular InstaView refrigerator is still not available in the market. It will be in November and the price will start at Dh7,399. The price for a Signature InstaView refrigerator is Dh29,999,” said Oh.
Meanwhile, the LG Signature TwinWash gives you the ability to wash two loads of laundry at the same time. It combines a full-sized front loading washing machine with a mini washer. The mini washer and pedestal housing can be purchased separately to give existing owners of LG front load washing machines all the benefits of the TwinWash.
The regular TwinWash price is Dh10,499 while a Signature TwinWash costs Dh14,999. “We see a higher demand for our washing machines in the UAE,” added Oh.
— deepthi@khaleejtimes.com