Growing electrification in SA will ensure LG's local operations weather the global financial slowdown, says the company.
In a statement, LG CEO Yong Nam said the increase in electrification matched a desire by people living on the continent for products that made their lives easier and connected them to the rest of the world.
“SA was one of the earliest and remains the fastest-growing market for mobile phones and technology,” he said. “This was largely because mobile phones were portable and assisted in overcoming mobility infrastructure limitations in SA. But now SA's infrastructure is catching up and more people are demanding consumer electronic products. This makes SA and Africa one of the most important territories for LG Electronics in 2009.”
Peet van Rooyen, MD of LG SA, echoes this, saying: “LG Electronics is set to capitalise on the South African and African market in this time of financial strain and efforts are under way to improve standards to global levels. These improvements, which include the HR system, reorganisation of business portfolios and focus on customer-centric processes, mean that LGE will continue to research, develop and supply Africa with products that consumers want.”
The electronics company says it has high hopes for its expansion into the rest of sub-Saharan Africa.
“Of course, SA and Africa are not isolated from the economic recession, but this market has the biggest potential to grow. In this region, we aim to achieve more than 20% of sales growth in 2009,” said Nam.
He adds that the company's focus during the economic slowdown will be on increasing its market share, saying: “Every company, not just LG, has been affected negatively by the economic downturn. LG Electronics will be intensifying its efforts to increase market share despite the economic situation.”
Nam confirmed the company would not reduce, and could even increase, its investment in research and development. He said it will continue to invest in what it considers future growth engines such as solar power, commercial air conditioners - sectors which it expects will expand and become increasingly profitable once the economy is back on track.
“These initiatives will enable LG to improve both growth and profitability over the long-term, regardless of the economic climate,” stated Nam.
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