LG on its way to make a powerful ecosystem of smart products: Hyoung Subji, Director, LG Electronics India

Subji who is the Director of Home Appliances and Air Conditioners for LG Electronics India, revealed that brand is leading the smart consumer durables segment in the country.

From Left to right – Hyoung Subji – Director, Home Appliances and Air Conditioners, LG Electronics India; Mr. Hong Ju Jeon – MD, LG Electronics India; Hyun UK Lee – Global Refrigerator President, LG Electronics India; Mr.Kim Jae IL-Pune Manufacturing MD, LG Electronics India

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LG recently commenced its side-by-side (SBS) refrigerator assembly line in India at its Pune factory, where the company also makes smart TVs, monitors, and washing machines. During the presentation, the company shared its future plans for India, which also included achieving 100 per cent year-on-year growth in 2023.

The premium electronics brand currently makes over 15 types of SBS refrigerators in India, which include InstaView SBS refrigerators, glass door SBS, water and ice dispenser SBS, basic and entry-basic SBS, which is the most affordable of the lot.

Following the presentation, The Indian Express got an opportunity to interact with Hyoung Subji, Director of Home Appliances and Air Conditioners, LG Electronics India. The director shared the company’s plans for the Indian market and below are some salient points from the interaction.

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When asked about the advantages of manufacturing side-by-side refrigerators in India, Subji said, “LG established its first factory in India in 2002 and the company has been making huge investments in India for localisation.” He also said that “LG is aligned with PM Modi’s Make In India Vision and the company always aligns with the government policies in India.”

Also read | LG announces side-by-side refrigerator manufacturing facility in Pune

He also specified that LG used to lose 20 per cent of its profit to custom tariffs and supply chain from China to India, and assembling side-by-side refrigerators in India will help the company to reduce these expenses. The director noted that the company will reinvest the profit to deliver more benefits to Indian consumers..

On the adoption of smart consumer durables in India, Subji said that LG is leading the segment in the country. He said that five years ago, LG began by launching washing machines, air conditioners, and smart TVs with Wi-Fi functionality. This, according to him, allows users to control most of the LG smart appliances via the LG ThinQ application.

With its array of smart products, the company is able to gather data using machine learning via the LG ThinQ app to understand the usage habit of the consumer and deliver various suggestions to get the most out of the LG smart products. “LG ecosystem is in the initial stage now and the company will add more products and features to make the LG ecosystem more powerful like the Apple ecosystem,” he added.

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When asked about the demand for SBS refrigerators in India, Subji said that they had a market share of 2-3 per cent pre-Covid in India, and that no brand wanted to invest in the segment due to lower ROI (return on investment). During the Covid-19, many people wanted products with hygiene-related features, and the market cap for SBS refrigerators went up to 7-8 per cent. He also said that the SBS refrigerator market will rapidly grow in the coming years with around 10-20 per cent market share in India.

Subji also confirmed that there will be no immediate price cut on the LG SBS refrigerators in India. However, the company will reinvest the profit to the Indian market to promote local manufacturing.