At its annual trade show held this year in the Midlands, LG reported good trading results in the challenging market and a fast increasing penetration of the independent channel.
Opening the event, Andy Mackay, LG commercial director, CE, Home Appliances & Home Entertainment, said that in 2010 LG made substantial progress across all its consumer electronics offerings. Commenting to IER he said: “Areas of excellence include plasma which saw an increase in unit share to 13% and Blu-Ray home cinema systems that saw unit share increase from 3% to 13%. Side by side fridge-freezers posted a 25% increase in the value of year on year sales.
“This boost was due to a surge in brand awareness and preference resulting from the investment in refrigeration, our core technologies, such as steam offering in floorcare and cooking, and the introduction of 3D to the market.
“This coupled with the 3D partnership between LG and Sky – perhaps the most potent industry alignment in the market – really saw LG take a strong foothold in the 3D market and strengthened brand preference.”
Mr Mackay has also stressed that LG has a made a clear shift in market positioning of its domestic appliances and home entertainment products, towards the premium end of the market, as evidenced by the greater than ever before share of the large screen television and laundry market in the above £550 category.
In 2010, GfK’s market audit found that LG was the fastest growing LCD and major appliance brand in the independent channel, demonstrating the company’s commitment to this channel.
“LG will reinforce this independent specialism in 2011 with bespoke training initiatives, investments in merchandising and broadband outlets and press and online activities. We understand that it is essential to have a robust training programme in place, bring the right products and show them off with the right demonstrations,” concluded Mr Mackay.
The full report from the LG trade event will be published in the May 2011 issue of IER.