[IFA2022] Ryu Jae-cheol, LG Electronics Vice President, "Built-in Appliances to Launch Within the Year"

Press Conference on the First Day of 'IFA 2022'
Questioned if Samsung's Phone-Held 'SmartThings' Would Be Outpaced
"UP Appliances Are LG's Unique Features, Difficult to Imitate"

Vice President Ryu Jae-cheol, Head of LG Electronics H&A (Home Appliance & Air Solution) Division, explains the company's products and vision at the press room next to the LG Electronics booth in Hall 18 at Messe Berlin, Germany, where IFA 2022, Europe's largest home appliance exhibition, is being held on the 1st (local time).
(Photo by LG Electronics)

[Berlin (Germany) = Asia Economy Reporter Moon Chaeseok] Ryu Jaecheol, Vice President and Head of LG Electronics H&A (Home Appliance & Air Solution) Division, stated, "We plan to launch 'built-in' products within this year, and we are currently in the final stages." Although the product preparation took some time, he expressed confidence that LG Electronics can actively target the European market after the launch. Regarding the 'UP Appliances,' which update existing electronic devices through LG's platform 'ThinQ,' he said they would be competitive even against mobile platform giants like Samsung Electronics.

On the 1st, Vice President Ryu made these remarks at a press conference before the opening of 'IFA 2022.' IFA 2022 is Europe's largest home appliance exhibition held in Berlin, Germany, for five days starting on the 2nd (local time). The announcement of a full-scale entry into Europe, the home of 'built-in appliances,' attracted attention. LG Electronics had previously declared during the tenure of former President Song Dae-hyun that it would leap to the forefront of built-in appliances by 2023.

In response to the question of whether the launch was somewhat delayed, Vice President Ryu said, "Due to the nature of manufacturing businesses, product preparation must be done first, and 'built-in' products are not a single item but a 'package' product consisting of dozens of types, so development takes time." He added, "We plan to launch built-in products within this year and are currently in the final stages." He continued, "Once launched, I expect LG Electronics' built-in business in Europe to gain momentum."

Vice President Ryu, Head of Division, posing in front of the 'LG Dios Objet Collection Mood Up' announced by LG Electronics at 'IFA 2022'. (Photo by LG Electronics)

At this IFA, LG Electronics newly introduced the refrigerator model 'LG Dios Objet Collection MoodUp,' which is linked with its home appliance and smart home platform 'LG ThinQ.' It is an 'UP Appliance' that offers 22 colors for the upper refrigerator compartment and 19 colors for the lower compartment, playing music with different rhythms depending on the mode. This means it is an appliance that can be upgraded immediately with new functions through 'LG ThinQ.'

The issue is that competitors like Samsung Electronics also offer similar product linkage services such as the 'SmartThings' platform. There are concerns that Samsung, a mobile powerhouse, might have an advantage in customer acquisition. Regarding this, Vice President Ryu said, "Although it may seem that competitors with a larger user base have an advantage, to fully utilize LG's UP Appliances' inherent functions, it must be done through LG ThinQ, and other companies' apps cannot be used." He added, "There are many ways not to fall behind in the market, and ultimately, it depends on which company provides more differentiated functions to customers."

Vice President Ryu mentioned that management risks such as the so-called 'three highs' (rising prices, interest rates, and exchange rates) due to the Russia-Ukraine war and logistics difficulties are burdensome. However, he believes that LG Electronics can survive independently with its premium home appliance strategy. He emphasized that they will continue the premium home appliance strategy linked with ThinQ, such as 'MoodUp.' He also mentioned considering a transition to a 'subscription economy' model in the future, where customers pay additional monthly fees for more benefits.

Vice President Ryu said, "Our basic strategy is to continuously strengthen premium products, which have been our strength, and differentiate with UP Appliances like MoodUp." He added, "The ultimate goal is to enhance premium products tailored to each customer's lifestyle." He emphasized, "From the hardware perspective, we match colors with the 'Objet Collection' and create ambiance with 'MoodUp' (UP Appliances), and on the software side, we are moving toward providing personalized home appliances. This is our biggest strategic direction." He stressed, "To achieve this, we must accomplish 'UP-ification' of all products."

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