On February 8, South Korea's "Digital" published an article saying, "Indeed, the brand power of Chinese companies has been enhanced to a certain extent." We will lead the market with high-quality products with competitive advantages, strengthen our products, and create a super gap that is difficult for Chinese companies to achieve. ”
In the Q&A session of LG Electronics' Q4 2023 results** meeting, the H&A department in charge of household appliances and the HE department, which is mainly focused on TVs, were asked one after another about the development trend of Chinese home appliance companies and LG Electronics' response.
Jin Liquan, Head of H&A Business at LG Electronics, said: "We continue to implement a dual-track approach for both high-quality and volume-based areas. The Premium Zone is strengthening its competitiveness in innovative parts based on high-capacity, high-efficiency products and differentiated designs. In the low- and middle-price segment, the company plans to expand ODM and respond to investments from Chinese companies, with a focus on strategic markets. ”
As the HE segment entered the peak season, sales increased in the fourth quarter compared to the previous quarter, but showed negative growth compared to the same period last year due to sluggish demand for high-end TVs, including flagship OLED TVs. There were also some problems in the HE department, especially the *** LCD panel. The LCD market has recently been restructured to be dominated by Chinese companies, and LG Electronics' dependence on Chinese companies has also increased.
Lee Chung-hee, Executive Director in charge of HE management at LG Electronics, said, "As the market share of Chinese LCD panel companies has expanded in the overall TV market, the proportion of our purchases from Chinese companies has also increased. LG Electronics, which ranks second in the world in the TV market in terms of sales, is operating large-scale logistics. Therefore, with most Chinese companies to maintain a stable partnership, there is no problem with panel supply and demand. ”
He also said, "We are minimizing logistics risks by obtaining a certain amount of ** from LCD panel companies in countries other than China such as Japan," and that "LG Electronics has a higher proportion of OLED TVs than other companies that focus on LCD TVs, so it helps to reduce risks."
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