Over the past three years, LG Appliances has seen its Goldstar sales triple, and company executives contend the time is right to step up the company's presence in the U.S. market, keeping Goldstar and introducing LG as a brand.
"We believe this is the right time for launching our LG brand as a premium brand," said Simon Kang, president of LG Appliances U.S. division. "For Goldstar, we're pretty much competing in a price-oriented market, so an emphasis is placed upon cost-competitive products. For the LG premium brand, it's a totally different game. Our focus is on consumer benefits, otherwise we cannot even begin to compete in the U.S. market."
Focusing on big-ticket items, like refrigerators, washers and dryers, LG wants to be known for providing products that boast outstanding performance and maximum efficiency, for the lowest possible price. In addition, company executives believe that getting a jump-start on technology-applied products, like their Internet-enabled refrigerators and home network compatible appliances, will secure them a higher profile position in tomorrow's markets. Kang said that initially LG wants to build its reputation with buying groups before attempting to enter into national accounts. Currently LG has deals set with both AVB and MARTA to distribute LG wares to independent retailers all over the country.