Samsung and LG Forecast Strong Q3 Performance... Accelerating with Home Appliance Marketing

[Asia Economy Reporter Ki-min Lee] As demand for TVs and hygiene home appliances increases, home appliance companies are expected to achieve favorable results in the third quarter of this year, and each company is intensifying its marketing strategies to accelerate growth.

According to the home appliance industry and market research firm FnGuide on the 12th, securities firms' consensus (average forecast) for operating profit of Samsung Electronics and LG Electronics in the third quarter of this year is 9.2891 trillion KRW and 716.1 billion KRW, respectively, up 14% and 44% from the previous quarter. The industry expects that TVs and set appliances will play a significant role in boosting the performance of both companies. Securities firms also forecast that the operating profit growth rate of Samsung Electronics and LG Electronics' home appliance divisions will be similar to or exceed the overall consensus. As the COVID-19 pandemic prolongs, the seasonal high-low phenomenon is easing, leading to a more sustained increase in demand for home appliances and TVs.

Accordingly, Samsung Electronics and LG Electronics are implementing various marketing strategies to maximize their performance in the third-quarter home appliance market and target the millennial generation (born in the 1980s to early 2000s), which has emerged as the next consumer group. First, with the normalization of untact (contactless) culture after COVID-19, online marketing is gaining attention.

Samsung Electronics, which established the integrated home appliance slogan "Now, make home appliances your own," participated in the global German home appliance exhibition IFA 2020 by hosting its own online event, "Samsung Unstoppable," attracting attention in Europe. In addition, it is actively promoting new products through YouTube.

LG Electronics opened a new corporate media platform called 'LiVE LG' last month to strengthen communication with customers. LiVE LG offers easy access to LG Electronics' content, including card news, videos, and infographics. Furthermore, LG Electronics is actively promoting its ultra-premium brand ‘LG SIGNATURE’ by appointing globally renowned celebrities as ambassadors.

Since millennials pursue both individuality and harmony and prioritize 'gashimbi' (a consumption pattern seeking emotional satisfaction relative to price), collaborations with other companies are also being strengthened. Recently, the most notable collaboration partner has been furniture companies.

Samsung Electronics recently reached a tentative agreement to open a shop-in-shop featuring Bespoke refrigerators, dishwashers, and other kitchen appliances at Hanssem’s largest domestic store, Daegu Beomeo Branch. Consumers can receive a total solution linking Hanssem’s remodeling services with Samsung Electronics’ smart furniture.

LG Electronics also recently collaborated with the Italian premium furniture brand ‘Cassina’ to showcase a customized kitchen at the LG SIGNATURE Kitchen Suite showroom in Nonhyeon-dong. LG Electronics created an integrated space of kitchen appliances and living room furniture through designer furniture such as column refrigerators, wine cellars, Cassina’s LC4 lounge chair, and Ombra Tokyo chair.

This content was produced with the assistance of AI translation services.