LG Electronics South Africa (LGESA) says the brand remains strong in the local market, seeing positive returns, despite calling time on its mobile business unit.
Last April, LG announced it had taken a strategic decision to exit the “incredibly competitive” mobile phone sector.
At the time, the South Korean electronics manufacturer said it would focus resources in growth areas such as producing electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business (B2B) solutions.
Jinkook Kang, LGESA's newly-appointed president, tells ITWeb that similarly, on the local front, the focus has been on expanding the product offering of the company’s B2B unit and consumer business.
“All our business units are important to us,” says Kang. “Our consumer focus still remains on our home appliances and home entertainment business units, together with air solutions for home usage.
“From a B2B perspective, we continue to drive our digital display solutions and industrial air solutions.”
Kang points out that LGESA's operations remain positive, even with the difficulties many industries faced over the past few years.
“As the world is rebuilding itself, we at LGESA look forward to growing within the market, to launch new products and continue to deliver world-class service to our customers. I also look forward to engaging with our stakeholders on the best way we can continue making our products accessible to the South African consumer.”
LG Electronics South Africa was among the local ICT firms impacted by the July unrest that saw over 40 000 South African businesses being looted, burnt or vandalised, with hundreds of shopping centres and warehouses ransacked in KwaZulu-Natal and Gauteng.
The company’s Durban-based factory, located at Cornubia Industrial Park, in Sundew Road, Ethekwini, was affected by the protest action in that community. At the factory, LG predominantly undertakes assembly of its home entertainment and screen offerings, for distribution around the country and into the broader Southern African Development Community region.
Commenting on whether the company has been able to recover lost ground following the looting, Kang says it continues to work very closely with everyone within the supply chain to ensure products are available at various retail partners.
“Our sales, marketing and support teams have been implementing our recovery strategy since the looting in July, to ensure our customers and stakeholders have access to our products. LG is committed to serving the South African market and its people for the long-term.
“Even though the looting had a severe impact on LG’s operations and product delivery to our retailers and consumers, we showed growth during 2021 and we look forward to another successful year in 2022.”
Meanwhile, LG posted a strong performance in 2021, achieving its “highest” annual revenue, with full-year sales of $63.16 billion, based on the 2021 financial results released today.
This, says the company, marks an increase of 28.7% over the previous year (2020), attributing it primarily to stronger sales of home appliances and OLED TVs.
LG also reported increased sales in the fourth quarter, with revenue of $17.76 billion, an increase of 20.7% from the same quarter the previous year.
“As challenging business conditions persist into 2022, LG is staying the course to strengthen competitiveness by further improving its cost structure and continuing to expand the presence of its premium appliances and TVs in the global market.”
The LG Business Solutions Company achieved revenue of $5.89 billion in 2021, a 15.8% increase over the previous year.
Fourth-quarter revenue increased by 14% from the same period in 2020, to $1.46 billion on the back of strong demand for premium PCs and gaming monitors, reveals LG.
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