[Concall] LG Electronics "Focusing on Nurturing Businesses and Strengthening B2B to Respond to China"

LG Electronics stated during the conference call held after the Q3 earnings announcement on the 27th that in response to the growth of the Chinese home appliance industry, it will "comprehensively assess the functions and our competitiveness by country to establish country-specific tailored strategies and readjust the priority of resource allocation."

The company explained, "We are determining the markets to focus on by evaluating market size, our market position, and the speed at which Chinese companies are catching up, and we are conducting a comprehensive diagnosis of brand, product, price competitiveness, and product coverage. We are working to clarify short-term and mid-to-long-term strategies by country."

It added, "Although securing profitability is not easy due to intensified competition in the existing home appliance business, we will focus early on nurturing new growth engines, continuously strengthen the B2B business, and maintain current profitability through portfolio advancement such as promoting new businesses."

Earlier, the company noted, "The Chinese home appliance sector is moving away from growth centered on low prices and actively investing in production sites along with strengthening product quality and brand power. For example, Haier is building new factories in India, Hisense in Mexico, Midea in Brazil, and Egypt."

[Image source=Yonhap News]

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