LG in drive for market leader spot
This was shared by LG Pakistan’s managing director, Su Young Ryu, during an interview with The Express Tribune.
“Our goal is to become the number one electronics brand of Pakistan, a brand that Pakistanis can cherish and relate to their lives. We are here with a vision and for this we want to continue expanding our business,” said Ryu who has been associated with LG since 2000. Ryu saw no security risk to himself and his Korean team while living and working in Pakistan. LG’s foreign team is working in Karachi and Lahore – the heart of Pakistani markets – to better understand preferences in electronic goods.
“Unlike other companies, we are not operating from the Middle East. We live in Pakistan and operate from here. This differentiates us from competitors.” According to him, understanding the local market through physical presence is vital to ensure success in a market of more than 170 million people.
On Chinese cell phones
Discussing the rapidly-expanding mobile phone market, Ryu said the last three years have brought a marked change after the onslaught of Chinese mobiles in the local market. He shared that all the top mobile set manufacturing companies are trying to cope with the challenge. “Almost all the big names are busy recapturing the market that was lost to Chinese handsets.”
“It is a dramatic change. Today, some 40 per cent of the market is controlled by Chinese mobiles,” he said. “Nokia, Motorola, Samsung and LG are busy planning to reclaim the lost market. Like other competitors, we are also cognisant of the challenge posed by these sets.”
Accepting the challenge head-on, the company is devising strategies to introduce low-cost cell phones that can cater to the demand of local population.
LG runs the only assembling plant in Lahore where products like split air-conditioners and liquid crystal display (LCD) television sets are assembled. “I don’t think there is any difference between manufacturing and assembling,” argued Ryu countering the talk that LG assembles and not manufactures in Pakistan. “We import all of our parts from South Korea and this helps us in maintaining product quality.”
Pakistan a vital market
Ryu said Pakistan is a very important market and even in comparison with the billion-plus market of India, the company considers Pakistan a vital place to do business. According to Ryu, the company enjoys over 25 per cent market share in the Middle East and Africa (MEA) region.
Pakistan’s economic progress has been badly hurt by the political instability especially over the last few years. “As soon as Pakistan starts realising the potential of growth, I believe this country will dramatically progress,” Ryu stressed.
On the efficiency of Pakistani labour, he said the country has an edge over China and some other countries. “Pakistan and India are blessed with one quality, workers in these countries are proficient in spoken English - an important trait multinationals look for,” said Ryu.
In Pakistan’s market, LG has a share of around 15 per cent in split air-conditioners, 20 per cent in LCD sets and 50 per cent in Plasma Display Panels (PDPs).
To boost its share, LG has decided to increase dealer shops so that the company can turn the dream of becoming the top local brand into reality. “We want to see LG as the first preference of Pakistani customers,” he concluded.
Published in The Express Tribune, October 10th, 2010.
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