LG Group is solidifying its foothold in Asia by pushing strategies tailor-made for each country.
LG Electronics is operating manufacturing facilities in Nanjing and Tenjin, producing TVs, smartphones, and home appliances such as washing machines and air conditioners equipped with localized functions.
Besides the customized hardware, the company is seeking to win the hearts of Chinese customers through marketing activities. The company has come up with a series of marketing campaigns for its SIGNATURE premium appliances, targeting those living in the country's most affluent villages.
LG Display is also beefing up its footing in China. The company has four liquid crystal display (LCD) panel and module manufacturing facilities there. They supply displays for TVs and diverse mobile and IT devices.
LG Innotek is also churning out state-of-the-art electronic parts such as camera modules, wireless charging modules, and eco-friendly light emitting diodes (LED) at two plants in Yantai and Huizhou.
The group's chemical and battery affiliate, LG Chem, is chalking up noteworthy achievements in China through aggressive investment to tighten its leading position in the global chemical industry.
The outfit plans to invest USD 100 million (113.5 billion won) to expand its manufacturing capacity for acrylonitrile butadiene styrene (ABS) thermoplastic polymer at its plant in Huanan, southern China. This will allow the company to boost its annual ABS manufacturing capacity of 300,000 tons.
In 2015, the company established an electric vehicle (EV) battery plant in Nanjing, eastern China. The facility has annual battery production capacity of more than 50,000 EVs.
Vietnam as Next Manufacturing Hub
LG Group has identified Vietnam as its next manufacturing hub, with its electronics affiliate establishing a pivotal production facility in the country's northeastern port city of Hai Phong.
The LG Hai Phong Campus, which started operation in 2015, serves as the firm's manufacturing center. The facility rolls out almost all the products of LG Electronics, including refrigerators, vacuum cleaners, air conditioners, TVs, and smartphones.
"Vietnam is famous for its large and inexpensive labor force, and the port city comes with a geographical advantage as a manufacturing hub," a company official said. "On top of that, the Vietnamese government offers tax advantages for overseas companies establishing plants in the country. This is why we view Vietnam as our next production center."
Notable Growth in India
Indian branch sales have grown to reach USD 2 billion as of last year, up more than 60 times compared with 1997.
One of the key reasons behind the whopping growth is the firm's localization strategies, with more than 99 percent of its workforce Indians.
"LG has become a leading electronics maker in India, as we have launched localized products such as a refrigerator that can operate for seven hours even in a power outage," the official said.
The efforts allowed the company to become one of the most popular electronics companies in the country. LG Electronics sold more than 50 million TVs, 30 million refrigerators and 10 million washers in India over the past two decades.
According to consultancy Trust Research Advisory, LG Electronics was named the most attractive brand in India last year. The company was also the most trusted brand there in 2015, according to the market tracker. – Korea Times