If you thought recession was a time to tighten the belt, cut corners and launch affordable products, LG Electronics doesn’t agree. Instead, the Korean multinational views the global recession as an opportunity to launch premium products and spend on brand building. Accordingly, the company?s local arm, LG Electronics India, will launch a Rs 100-crore Health Plus campaign this month, together with a raft of premium home appliances.
This deviation from conventional wisdom is based on customer surveys that found people preferred to stay at home during recession than dine out or go on a holiday. So, LG has developed appliances that make home-stay more comfortable for the entire family. Another survey found that globally, consumers are more health-conscious than before and are willing to pay more for products that give them health benefits.
LG has worked on these consumer trends and come out with a series of appliances with health benefits. So, it has washing machines that help eliminate allergens, mites and residual detergent; air-conditioners that remove microscopic contaminants, dust, mites and pollen; refrigerators that release vitamin ions to preserve nutritional value of fruit and vegetables and eliminate bacteria, mildew and odour, and microwave ovens that ?steam cook? food to preserve nutrition.
Underlining the health benefits, Young Ha Lee, president & CEO of LG Home Appliance Company, told a visiting group of journalists, “Our products are designed to make it easier for home-makers to maintain a healthy home in every aspect — whether it is about eating healthy, keeping the air cleaner or washing your babies? clothes in the most hygienic way possible.?
He said the healthcare products aim to contribute 15-20% to the total revenue of the company in Asia. But in India, this could be 15%, said Moon B Shin, MD, LG Electronics India Pvt Ltd. The idea is not to generate volume, but to build LG as a premium and technology-based brand. The long-term goal of LG is to become an innovation-led company, moving up from the current focus on being a customer insight-based firm.
LG is also planning an audacious, big-bang entry into the commercial air-conditioning market in India, just when summer is waning and the construction industry in India has entered a phase of slump. LG is regularly taking architects, realty consultants and dealers to its commercial AC plant in Seoul, showing off the stringent quality and durability tests undergone by each machine, and explaining the space and energy-saving qualities of its various models. The idea again is not to create immediate volume, but to build the LG brand.
(Travel for this story was sponsored by LG Electronics)