DUBAI, 24 June 2003 — Korean giant LG Electronics launched its first digital center in the Middle East here on Saturday, signaling its ambitious plan to be among the top three electronics companies in the world by 2010.
The $3 million center is designed to showcase the company’s product range in consumer electronics, IT digital display and mobile telephony.
The 1,140-square meter Digital Center is expected to receive up to one million local and 30,000 foreign visitors during its first operating year, top LG management executives told a press conference. The opening was attended by Dubai Director of Information Sheikh Hasher Maktoum, LG Electronics Vice Chairman and Chief Executive Officer Ssang Su Kim and S.Y. Kang, Korean ambassador to the UAE. The global digital leader also aims to be the “top national brand” throughout the Middle East and Africa by 2005.
At present, LG ranks among the top five in the global home appliance industry. It says it leads the world in global sales of air-conditioners. In 2002, it topped global production lists for microwave ovens and was No. 1 with sales of over 12.1 million microwave ovens.
“LG has an ethos of putting the customer first in everything it does,” said Kim who was recently named one of the “Stars of Asia” by Business Week.
“This philosophy begins in the R&D stage and runs right through the company and its distributors to our after-sales service personnel,” he added.
“Our urge to be the best keeps motivating us to reach the top. I believe that LG is on the right track. Our products are sold in over 148 countries.
In 2002, the company’s revenues totaled over $15 billion. Last year, the appliances division took in revenues of $5.6 billion, more than double its $2.7 billion sales five years ago.
The unit now accounts for over half of LG’s overall profits. In fact, our progress in certain fields such as commercial air-conditioners and mobile phones has stunned our competitors,” Kim said.
He explained that the company might build an assembly plant in the Gulf in future if demand increases.
LG, already the market leader in the Middle East and Africa in TVs, split air-conditioners, PDP monitors and optical storage devices, is set to achieve an annual growth of 30 percent to reach the turnover of $2.5 billion in the region by 2005, up from $1.5 billion projected this year.
M.B. Shin, president, Middle East and Africa operations at LG, said the company would achieve its ambitions by increasing brand awareness in the region.
LG has had a presence in the UAE since 1977.
A recent Gallup poll rated LG as the No. 1 company in a customer satisfaction index of seven out of the nine, he said, adding that LG would invest strategically in R&D to come up with innovative life-enriching concepts like “Digital network homes.”
The company, according to him, has also implemented advanced management philosophies like “Tear-down-and-redesign” and 6 Sigma to enhance the capabilities across all areas.
The theme for the Digital Center is a “touch and feel” concept with the dual purpose of a consumer education center and a regional sales and marketing training hub.
