LG Strategy: Capture High-End Commercial Market

With the adjustment of LG Electronics' overall development strategy, LG's focus on air-conditioning business in China has gradually shifted from home to high-end and commercial. At present, LG Electronics' air-conditioning business is developing well and it is expected that the 2012 target will grow by about 30%. It is reported that LG Electronics adjusted its global business unit at the beginning of last year and incorporated the air-conditioning division into the Energy Solutions Division. With the advantage of high-end technology, LG Electronics improved the competitiveness of LG air-conditioning technology. By adjusting its business strategy and channel strategy, it will capture China's high-end and commercial markets.

First, the traditional channel strategy transformation

In the face of the Chinese market, LG actively adjusted its distribution channel strategy and explored new ways of cooperation. Yan Jirun said that for air conditioners, which are strong cyclical products, the burden on manufacturers to rely solely on distribution in supermarkets will be very heavy, especially in the context of the slowdown in the growth of the home appliance industry in recent years. Therefore, LG has taken more dealers to enter the main market, supplemented by supermarkets. In other words, the circulation of LG air conditioners in each market may not be the same. In some areas, sales are authorized to dealers to sell in their channels, while other regions may choose local “installed, strong after-sales dealers”. Cooperation.

“In fact, at present, major air-conditioning brands in China are basically distributors who enter the main operation. Only a few brands operate directly in a few areas. Therefore, LG is adapting to the trend and adjusting the circulation structure.” LG The general manager of the electronic central air-conditioning marketing headquarters, Rui Ji-run, said that the current method is to cooperate with LG's own product line stores and local distributors. It is understood that LG Air-conditioner has established three major marketing areas in North China, East China and South China in China, and its central air-conditioning has established business offices in major provincial cities and large and medium-sized cities throughout the country.

Second, B2B business is getting better

This year, LG Electronics China Limited and Shenzhen Huanan City Group have reached a strategic cooperation. The two parties reached a consensus that LG's central air-conditioning, commercial displays, home appliances, and other products will be given priority in the construction of South China City, and further cooperation with LG Electronics will be carried out in the fields of warehousing and logistics. It is understood that the amount of this cooperation exceeds 28 million yuan.

Jia Xianzhong, general manager of the tendering and control department of the South China City Group, said that choosing to cooperate with LG is a matter of taking advantage of LG's global resources and has a rich product range and reliable quality. “In the past cooperation, we have established a very good impression and full confidence on LG Electronics. We hope that in the upcoming tender of 2 million square meters of cooling area and commercial supporting facilities such as electronic signage, large-screen splicing, hotel television, etc. Continue to use LG's products."

LG Commercial's total solution is to use its own rich industry experience and technical influence, according to the customer's procurement needs, according to the procurement budget, the use of the environment, product performance expectations and other comprehensive elements to provide tailor-made integrated solutions. Adhere to the market-oriented, committed to a one-on-one custom development based on the diverse needs of customers, to achieve design, installation, supervision, after-sales service. Compared with the traditional procurement model, the product integration, service professionalism, cooperation efficiency, and cost-effectiveness of LG's overall solution are far ahead.

At the same time, based on the "Quality Founding" business philosophy, LG Air Conditioning is actively exploring new business models and proposed "to provide air solutions including home, central air conditioning and air purifiers and other products and design." It is reported that in the previous cold year, LG's air-conditioner sales were good, and sales of variable-frequency products, luxury cabinets, and Multi-v were significantly increased. Benefited from the adjustment of the subsidy policy and its own product strategy, it is expected that in 2012, LG's air-conditioner sales in the Chinese market will increase by 30% compared with last year.

Third, business intelligence air-conditioning environmental protection and efficient

This year, LG is pushing the Multi-V series intelligent central air conditioning system. This product continues the traditional quality of LG commercial air-conditioner with high energy-saving, high-efficiency, environmental protection and green innovation. IPLV of all outdoor units surpasses the national standard and passes the national first-level energy-saving certification. This not only meets the needs of different building structures, but also provides customers with more diversified choices, continues to lead the development of commercial air-conditioning technology in the industry, and is expected to become the core product of the next-generation air-conditioning solutions.

It is understood that Multi-V is a central air-conditioning system that can be intelligently controlled by LG Electronics. It is a system in which outdoor units are connected to multiple indoor units through a refrigerant pipe. Its energy-saving effect is significant, it is easy to install and saves installation costs. It is an effective pipe structure system that can be freely connected with various indoor units.

At the same time, LG Multi-V adopts the DC frequency conversion high-pressure chamber scroll compressor produced by the original imported LG Electronics Korea factory, which has low energy consumption and high efficiency. The DC-inverter compressor rotor is made of permanent magnetic material, which overcomes the electromagnetic noise and rotor loss of the AC inverter compressor. In the increasingly rigorous assessment of air-conditioning rating, the highest level is still available, which is a typical high-efficiency, environmentally-friendly air conditioner.

LG intelligent DC inverter compressor can automatically adjust the cooling capacity and the dehumidification operation mode according to the room environment, so that it can quickly and efficiently respond to changes in the environment of the room, and achieve a rapid fluctuation with a small temperature difference at low speed and low energy consumption. , Energy-saving and comfortable temperature control effects, on the basis of existing products to reduce noise, to bring consumers a comfortable environment.

At present, LG has been operating at full capacity in Tianjin and Qingdao. Among them, the Tianjin plant is a production base of LG Air-conditioner located in China, and its products are sold both at home and abroad. Industry insiders pointed out that under the background of China's industry, the transfer of the global industrial chain is a common problem faced by the entire foreign 3C brand. Faced with a slowdown in market growth, LG Electronics has a clearer strategy for high-end and commercial markets. By reducing operating costs and realizing specialized air-conditioning operations, LG Electronics is expected to open up new roads.