CG Electronics, the sole distributor of LG consumer electronics recently launched LG Inverter Technology products in the Nepali market. Various types of home appliances with LG Inverter Technology were showcased at the launch under the theme 'Energy Saved is Energy Earned'. Brian Park, Vice President, Sales and Marketing of the Korean consumer electronics giant was present at the event and Nikeeta Gautam of New Business Age talked with him about the benefits of LG Inverter Technology products and the market potential of such appliances in Nepal. Excerpts:
Could you elaborate on LG Inverter Technology and highlight its benefits?
LG Inverter Technology products are efficient appliances and machines designed to reduce power consumption. For instance, consumers can save 36 percent energy using the Inverter Technology based refrigerators and 70 percent with LG Inverter Technology air conditioners and 26 percent with washing machines. The new appliances are cost effective in terms of energy usage saving money. Besides this, the durability of Inverter Technology products is long extending for 10 to 20 years.
How long do you think will it take Nepali consumers to fully adopt Inverter Technology products?
The basic products are still with the non-inverter system. For example, the single door refrigerator doesn’t come with the inverter technology. Similarly, some other products in the market still have the older technology. We have not rushed into incorporating the Inverter Technology in all of our products, though customers can keep in mind that it does not cost more when they purchase our products. The will do it gradually and by the next year all LG appliances will be changed into Inverter Technology products.
Many markets in Asia slowly adopt newer technologies compared to markets with a better economy. It is due to the fact that products with new technology are a bit costlier than the machines using older technologies. However, people will gradually understand the benefits of those products and adapt to it. I think it will take around five years for the Nepali market to turn towards the Inverter Technology. Our experience has shown that Nepali consumers eventually adopt new technologies. For example, many products including LED televisions took time to get a foothold in the market here. But now such products have fully occupied the market. We expect the same with the Inverter Technology products. Here, LG is the number one brand in the washing machine, televisions and refrigerator segments.
How has the market been like for LG electronics in Nepal? What is the market share of LG electronics in Nepal and how important is Nepal's market for LG?
The market share of LG is 30 percent here and we are more focused on building a good relationship with our customers than the monetary profit. Being relatively smaller, the Nepali market has strong potential to grow. Currently, the market of consumer electronics is growing fast and will accelerate in the days to come.
How is the competition for LG globally?
Globally, LG has a 15-20 percent market share in the television segment, 30 percent in the washing machine category and refrigerators hold a 25 percent market share.
The partnership of LG and CG has crossed over three decades. How have both companies benefitted from the partnership? How will the partnership move ahead in the upcoming years?
It would have been very difficult for LG to create a market in Nepal without CG. We have garnered so many customers with the help of CG. CG has maintained a good relationship with Nepali customers being the authorised distributor of LG. Both companies have benefited from the partnership and we look to strengthen it further in the future.
What campaigns are you planning to launch to promote Inverter Technology?
We will have a range of campaigns about LG Inverter Technology products. There will be mass media and PR campaigns and reviews of different Inverter Technology products. We will also educate consumers about the benefits of using such product from our LG brand shops, along with sequential events with dealers and consumers. We have plans to organise some big events with media, dealers and customers this year.