South Korean company LG Electronics plans to strengthen its country-by-country strategy to compete with its Chinese rivals. Chinese firms have been investing in each production region, improving their products and brand power. In response, LG Electronics will develop customized strategies for each country, taking into account resource investment priorities, market size, and the threat from Chinese firms.
Furthermore, LG aims to generate over 40 trillion won ($29.5 billion) in sales from its business-to-business (B2B) operations by 2030. B2B sales currently account for more than 30 percent of LG’s total sales this year. The B2B sector is less affected by economic uncertainties and can provide stable sales and profit.
LG’s strategy to become a “smart life solution company” includes accelerating business-to-business connections, exploring new business areas such as digital health and electric vehicle charging, and upgrading its home appliance portfolio. The company also plans to focus on increasing sales of its major home appliance products and expanding its presence in the electric vehicle parts business.
LG’s third-quarter operating profit increased by 33.5 percent from the same period last year, driven by strong performance in the home appliance unit and the vehicle component business. The company aims to strengthen its lineup for middle-income consumers to respond to decreasing demand.
Despite the positive earnings announcement, LG’s shares closed lower on Friday.
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