In the long run, it is easier and faster to penetrate a new market with a premium brand image first with high-end products, which will create a trickle-down effect leading to a growth in mass-market product sales later, said Lyu.“Sales of the Signature Kitchen Suite lines so far this year jumped two to three-fold from last year while LG-branded mass-market product sales are projected to grow more rapidly,” said Lyu.“At the current pace, the (built-in business) is expected to grow into our new growth engine.”The Korean appliance company is actively seeking to expand its presence in the business-to-business (B2B) built-in market in Europe despite the market’s high barriers to entry.“Due to the high entry barriers, it takes longer to make profits in the B2B built-in market compared to the B2C market but once our B2B business settles into a new market, we are expected to enjoy steady sales and profits,” said Lyu.
MILAN, ITALY – LG Electronics Inc.eyes 1 trillion won ($722 million) in global built-in appliance sales in three years by winning the hearts of consumers in Europe, the world’s largest built-in kitchen appliance market, with both premium and midrange products, said the company’s president.“The company will rake in more than 1 trillion won in global sales of built-in appliances by 2027 with our proprietary AI technology, as well as distinguished product quality and design,” Lyu Jae-cheol, president of LG Electronics Home Appliance & Air Solution division, told reporters at Milan Design Week 2024 in Milan, Italy on Tuesday.
To make a successful landing in the B2B market, LG Electronics has been actively building a distribution network, Lyu said, adding that the company is expected to sell its built-in appliances through more than 1,000 retailers mainly in Italy, Spain and France this year.“We will build on the success of our built-in business in North America to speed up our expansion in Europe,” Lyu said as he expected the European built-in appliance market will take another leap with a new growth momentum driven by artificial intelligence technology.
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