LG Electronics Accelerates Push into Europe: "Double Sales in 5 Years" [IFA 2025]

Ryu Jaecheol Unveils European Home Appliance Strategy
"Double Sales in 5 Years, Aiming for No.1 Brand"
Focus on Qualitative Growth and Launch of Region-Specific Products

LG Electronics has announced its ambition to double its European sales within five years and become the number one home appliance brand in the region. The company’s strategy is to pursue qualitative growth in areas with low demand and price volatility but guaranteed profitability, such as business-to-business (B2B), direct-to-consumer (D2C), and non-hardware (Non-HW) software and services.

Jaecheol Ryu, President of LG Electronics Home Solutions Business Division, shared this vision at a press conference held on the 4th (local time) at the International Consumer Electronics Fair (IFA) 2025 in Berlin, Germany. He stated, “LG Electronics has achieved rapid growth in the highly competitive European market over the past several years,” and added, “Through a ‘regionally customized’ product strategy that carefully reflects the needs of European customers, we aim to double our European home appliance sales within five years and firmly establish ourselves as the leading home appliance brand in Europe.”

Jaecheol Ryu, President of LG Electronics Home Solutions Business Division, is introducing the European home appliance strategy at a press conference held on the 4th (local time) at the International Consumer Electronics Fair (IFA) 2025 in Berlin, Germany. LG Electronics

To achieve this, the company plans to accelerate new growth businesses such as B2B, D2C, and Non-HW. He said, “We will not only strengthen our premium lineup but also target the volume zone, aiming for a quantum leap in both profitability and scale in the mature European market.”

President Ryu provided a detailed vision for growth in each sector. In the B2B segment, the company plans to focus on built-in appliances, considering the narrow housing structures common in Europe. The built-in market is a representative B2B sector, where home appliances are supplied directly by construction companies during residential development, or by interior material suppliers specializing in appliances. Because business stability, product durability, and maintenance capabilities are comprehensively evaluated when selecting a home appliance brand, the entry barrier is high. However, it is important because ongoing partnerships can ensure stable, large-scale sales.

The European built-in market is estimated to be worth approximately 24 billion dollars. LG Electronics aims to increase its built-in sales in Europe by more than tenfold by 2030. To achieve this, the company will strengthen its B2B-focused organization and restructure its built-in appliance business around the mass premium brand “LG Built-in,” which combines reasonable prices with advanced features. The company will also expand its business operations from Southern Europe, such as Italy and Spain, to premium markets in Western and Northern Europe. Taking into account the large tourism industry and aging population, LG Electronics will also launch the commercial laundry appliance lineup “LG Professional” in Europe.

Jaecheol Ryu, President of LG Electronics Home Solutions Business Division, is introducing 'Spielaum,' an AI home solution space expanded from home to mobility, at the 'International Consumer Electronics Fair (IFA) 2025' in Berlin, Germany, on the 4th (local time). LG Electronics

In the D2C field, the company aims to triple the sales of its Online Brand Shop (OBS) by 2030, developing it into an influential sales channel. By enhancing artificial intelligence (AI) services such as chatbots and preference analysis, LG Electronics plans to improve the purchasing experience and increase sales rates, while also expanding the number of exclusive models available only through OBS. Additionally, the company will boost repurchase rates and brand loyalty through personalized services and customized marketing. OBS is not only highly profitable, but also allows the company to use the vast customer data collected during sales for targeted marketing and the development of new products and services.

In the Non-HW sector, LG Electronics will actively commercialize its “AI Home” platform business. The company will first launch “ThinQ ON,” an AI home hub equipped with generative AI, and “LG Internet of Things (IoT) devices” that work in conjunction with it in major European countries. Generative AI will provide an irreversible experience by optimally controlling AI appliances and IoT devices according to customers’ lifestyles, creating a lock-in effect that encourages customers to continue purchasing LG appliances.

President Ryu repeatedly emphasized the importance of the European market. He said, “Along with North America, Europe is the world’s most important premium market, and this year’s IFA exhibition focused on assembling products tailored specifically for Europe.”

According to global market research firm Statista, the European home appliance market is expected to reach approximately 150 trillion won this year and grow at an average annual rate of 4.1% through 2030. To strengthen its presence in Europe, LG Electronics plans to launch a wide range of locally customized products focused on high efficiency, design, and convenience. The company’s strategy is to expand the quality and technology recognized in premium products to the volume zone, increase profitability even in the volume zone, and thereby enhance both market dominance and profitability.

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