LG Best Shop, a 'Positive Trend' Despite the Impact of COVID-19

LG Electronics models are introducing the 'LG OLED TV' at the LG Best Shop store in Yeongdeungpo-gu, Seoul. (Provided by LG Electronics)

[Asia Economy Reporter Dongwoo Lee] LG Electronics' offline brand shop, 'LG Best Shop,' is raising expectations for record-high sales this year despite the COVID-19 pandemic.

According to LG Electronics' quarterly report on the 6th, cumulative sales of Hi Plaza in the third quarter of this year totaled 2.2432 trillion KRW, showing only a slight 1.4% decrease compared to the same period last year (2.2752 trillion KRW). Considering the COVID-19 pandemic in the first half of this year, this is regarded as a strong performance. Net profit during the same period was 14.5 billion KRW, more than doubling from 6.2 billion KRW in the previous year.

Hi Plaza is a subsidiary wholly owned by LG Electronics, responsible for the distribution and sales of products through domestic LG Best Shop stores. As of this month, it operates about 400 directly managed LG Best Shop locations nationwide.

LG Electronics analyzed that the strong sales performance of hygiene appliances due to the prolonged COVID-19 situation and the expansion of experiential premium stores positively influenced sales.

In fact, among LG Electronics' domestic dryer sales, products equipped with TrueSteam accounted for over 80%, and LG Dios dishwashers with steam-equipped large-capacity models accounted for more than 90%, driving sales.

Furthermore, LG Electronics is strengthening marketing by opening and expanding experiential premium stores consecutively, including the LG Best Shop Gangnam flagship store, Hyundai Department Store Mokdong branch, Ilsan Kintex branch, and Galleria Department Store Gwanggyo branch.

In particular, the newly launched space interior appliance brand, ‘LG Objet Collection,’ introduced in the fourth quarter of this year, is expected to boost sales in the second half. Additionally, customer interest in new appliances such as the rollable TV and the plant cultivator scheduled for release this month is increasing store traffic.

An LG Electronics official said, “Despite the COVID-19 situation this year, strong sales of hygiene appliances and a steady increase in customers who want to directly experience and purchase premium products at stores seem to have led to good results. We expect demand to expand through new products in the second half.”

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