LG to open three showrooms this year

Dubai: Consumer electronics giant LG Electronics is expected to open three new exclusive showrooms this year in bid to boost its market share in the Middle East and Africa (MEA) region.

The South Korean firm yesterday officially opened a 33,000 square foot MEA headquarters in Karama, Dubai, in the presence of Dr Rashid Ahmad Bin Fahd, Minister of Environment and Water. The building is more than three times larger than the older headquarters,

K.W. Kim, CEO of LG Electronics MEA, said the company is committed to being close to its customers and understanding the unique needs they have in each market it operates in.

The region has experienced a tough 12 months, but we have taken the bold step of investing and expanding ahead of the curve, we believe this commitment will reap reach dividends from this year.

He said, "We have also targeted 42.8 per cent increase in revenues this year to $5 billion compared to $3.5 billion last year."

LG's foothold in the region began in 1988 with a liaison office in Dubai with 10 people. In 1996 it became a subsidiary and now employs over 270 personnel in its regional headquarters.

"We will be opening two showrooms in Qatar in June and one Bahrain this year, H.S. Paik, President of LG MEA, said.

The second largest TV vendor expects the demand for LCD TVs to grow fast and combined with the Fifa World Cup the demand is going to be exponential in the region. "We expect to sell around 500,000 TVs in the region and expect around 5 per cent of the LCD TVs sold to be 3Ds."

According to Gartner, the Korean firm has sold 1.75 million units in MEA with a market share of 5.1 per cent compared to 1.86 million in the first quarter of last year.

Paik said the firm will focus on younger generation to boost cellphone sales. "We will be launching new smartphone models in the second quarter.

"The confidence is returning to the Dubai market after the slow recovery in the economy, so we expect around 20 per cent growth in UAE for the full year.

"When we talk about growth, we expect a big growth from Qatar and Yemen, but when we look at numbers it is always the UAE."

He said the region contributes 6 per cent growth to the group's revenue. We want to solidify our market share with new products and innovations.

"LG's commitment to the region will increase further with the addition of LG's first learning centre which is currently under construction in the Jebel Ali Free Zone and it will provide training and support for LG's distributors and staff across the region," Kim said.