Speaking at IFA 2012 in Berlin, Havis Kwon, CEO of LG Electronics Home Entertainment Company, said LG is looking forward to a sustained period of profitable growth by leveraging current technologies to their fullest potential and by creating an environment at LG where speed and innovation are viewed as being just as important to the TV business as to its mobile business.
“LG is well on its way to capturing the top position in the global TV market by creating new momentum for profitable growth with an aggressive push in OLED TV and setting new benchmarks with CINEMA 3D Smart TV products,” said Mr. Kwon. “Since 2000, Korean manufacturers have maintained a leadership role in the TV market with flat panel TVs. But we can’t become complacent. The next generation of TV technologies will won’t just come from Korea and Japan, but likely from developing markets such as China.”
Establishing Solid OLED TV Market Leadership
Based on the advantages gained through LG’s WRGB technology, the company is planning to initially launch its 55-inch OLED TV in Korea this year, followed by other key markets as production ramps up. At the same time, in order to stay ahead of its rivals and to offer a fresh portfolio for customers, LG will expand its OLED TV lineup for 2013 with a variety of next-generation products.
OLED TV has significant strategic importance for LG. The speed at which LG Electronics and LG Display were able to develop the WRGB technology behind their OLED TV and then begin production a few months later highlights how far TV innovation has come. The task at hand now is to leverage this process for future projects. LG will continue to develop products though its own R&D as well as in partnership with sister companies such as LG Display and LG Innotek.
In terms of production capabilities, LG plans to establish a stronger base than its competitors through significant investment and development in partnership with LG Display. Through strategic vertical integration, LG will be able to address the challenges that come with rapid changes in technology and industry structure, succeeding where other players may not.
Taking Leadership in 3D TVs and Smart TVs
LG will continue to expand its successful CINEMA 3D TV lineup, all featuring Film Patterned Retarder (FPR) technology. The full portfolio of 3D TV products will include models from 32 inches all the way up to 84 inches, further advancing the consumer perception that 3D = LG.
In addition to expanding its CINEMA 3D TV lineup, LG will focus on introducing new, differentiated products as part of the company’s aim of achieving the number one rank in global 3D TV sales. The Ultra Definition (UD) 3D TV is one such example. The 84-inch model launched this year creates a new benchmark for premium TVs as the stunning picture quality will allow LG to further secure its competitiveness and leadership in TV technologies. Future products will be offered in various screen sizes as LG looks to broaden its UD 3D TV line-up.
For its Smart TV business, LG will take on a leadership role in growing the Smart TV Alliance with key partners to make web-based Smart TV applications compatible across various manufacturers’ products. This will help LG expand the reach of it its proprietary Smart TV platform, Netcast. And LG’s partnerships with premium content providers and broadcasters will further strengthen its Smart TV offerings, benefitting both consumers and potential business partners.
Improved Product Portfolio for Profitable Growth
In order to attain the top position in the global TV market, LG is pursuing growth by improving its existing product portfolio and delivering solutions appropriate to a wider range of consumers. LG’s home entertainment products will be organized under newly created categories which will be rolled out in conjunction with specifically-tailored marketing strategies.
Products will be categorized as Premium, High-end, Mass or Low-end, according to their specifications and target consumer groups. OLED TV and UD 3D TV is classified as a Premium product and will be launched in strategic markets with an awareness campaign to explain what a 4K UD TV can offer. LG also plans to increase the profitability of its High-end products equipped with CINEMA SCREEN Design by providing more large-screen options to satisfy the growing demand for truly cinematic home viewing.
LG will continue to develop mainstream products, with a focus on increasing its presence in emerging markets. Specifically, LG will deliver a variety of competitively priced, small- to mid-size LED TVs and Smart TVs. Further value will be created by offering products customized to the specific requirements of various local markets. The company also plans to add more production lines in emerging markets.
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