CG Electronics, the authorised distributor of LG in Nepal, opened the seventh LG Lifestyle Shoppe in Nepal at Gwarko, Lalitpur on February 19. The exclusive showroom showcases a wide range of exclusive LG products. The showroom has all of LG’s innovative home entertainment, home appliances, air conditioning and energy solutions products. Seung Ho Lee, export director of LG Electronics, Singapore, was in Nepal to inaugurate the new LG outlet. New Business Age caught up with Lee to talk about new trends in the consumer electronics market, global and domestic competition and other issues. Excerpts:
LG has added yet another Brand Shoppe under its expansion drive in the Nepali market. How have these exclusive outlets helped the growth of LG’s business in Nepal?
We have been working together with Chaudhary Group for over 30 years, and we have been focusing on meeting our Nepali customers’ needs, especially high-technology products such as Ultra HD TVs, OLED TVs, washing machines and air conditioners. We have been introducing new products in the Nepali market. We have been focusing on showcasing these types of products in the LG Brand Shoppes in Nepal. So, opening these exclusive outlets is one of the strategies we are employing with our local partner.
What preferences do think Nepali consumers have in electronic appliances at present?
Nepali customers like to buy medium and high category products such as UHD (Ultra High Definition) 4K TVs, high-capacity washing machines and refrigerators. Currently, we are aggressively lining up our inverter air conditioners to minimise energy consumption. So, we are working together with CG to penetrate customers who demand medium and high category products. We hold first and second positions in the market in different product categories. We are working with CG to become number one in mainly four categories - TVs, room air conditioners, washing machines and refrigerators. I think we will be number one in these categories in a few years.
Nepal has registered a healthy economic growth in recent years. As time goes by, Nepali consumers will want to buy high-technology products. So, we are introducing new products like OLED TV, UHD TV, TWIN Wash washing machines, and InstaView refrigerators and inverter air conditioners at affordable prices so that customers can experience high-quality LG products.
The influx of several Chinese, Indian and South East Asian consumer electronics brands has increased the market competition in Nepal. How is the competition for LG?
LG and CG have been focusing on the medium to high category with our product technology and CG’s marketing investment. Even though we are facing a big challenge from Chinese and Indian brands, they might focus on the low-end category, which is why we can overcome attacks like that. Also, CG’s differentiated marketing activities make us unique from other brands.
How is the competition for LG globally?
Globally we are doing well, especially with the OLED TV. We are dominating the TV segment with our new technology. We are doing quite well in the washing machine segment as well, with our brand placed number one globally. We are penetrating the refrigerator market with our InstaView Door-in-Door refrigerators.
What is the market prospect for LG in Nepal?
Within two or three years, we plan to achieve the absolute number one position in the Nepali market. We are currently doing 30 percent gross, and we expect to achieve 30 percent sales gross with CG.
What new products are in LG’s pipeline for Nepal?
We have introduced the invertible air conditioner with the new R32 refrigerant technology along with OLED TVs, TWINWash and InstaView refrigerators. We will expand our product line with these categories.