"LG's aided brand awareness has skyrocketed to 75 percent today from 33 percent three years ago," Ahn said. "This confirms the success of LG's 'Life's Good' marketing campaign and premium product positioning." Highlighting the size and scope of LG Electronics, Ahn reported that American consumers are now purchasing more LG products than ever. "Did you know that 120,000 LG-brand products are sold in the U.S. everyday?" he asked.
Consumer Electronics. As the world's largest manufacturer of flat panel displays, "we shipped more than 47 million units during 2005 globally," the CEO said. "And, in less than three years, we have grown our U.S. flat panel business significantly - with a revenue increase of more than 90 percent this year alone."
He explained that LG develops flat panels, plasma and liquid crystal displays (LCDs) with "Full HD" 1080p display capability and other leading-edge technologies. "As an example of our product leadership, LG's 100-inch LCD panel was just named to the Guinness Book of World Records, as the biggest LCD on the planet," he said.
Product leadership starts with technology, Ahn said, explaining that LG owns core DTV technologies, not just plasma and LCD modules, but industry- standard digital technologies. The "VSB" (Vestigial Side Band) technology, developed by LG's U.S. research center, is the "centerpiece" of the HDTV broadcast standard. Ahn added, "We are proud to be a leader in completing the digital TV transition in the U.S. and around world."
He also emphasized LG's strong manufacturing capabilities, including two flat-panel TV assembly plants in North America - for LCD TVs and monitors in Mexicali, Mexico, and for plasma TVs in Reynosa, Mexico. "The Reynosa factory produces the core component of plasma TV, the PDP (plasma display panel) module," Ahn said. "I believe this is the only plant in North America producing PDP modules today."
The new $45 million Reynosa PDP module operation, which will further enhance LG's capabilities in serving its U.S. retailers, has a monthly capacity of about 60,000 units, and is expected to increase to 100,000. With the completion of the Reynosa plant, LG Electronics now has four PDP module plants in four different regions: Mexico (Reynosa), Poland (Mlawa), China (Nanjing) and South Korea (Gumi). Each plant serves, respectively, as a hub for the Americas, Europe and Asia.
Digital Appliances. LG's premium leadership and strength in the North American marketplace has helped LG Electronics move "from the tenth to the third largest appliance manufacturer in the world," the CEO said.
This year in the U.S., LG launched the award-winning, premium products such as the SteamWasher(TM), Panorama(TM) Three-Door refrigerator with ice and water dispenser and new TV Refrigerator with Weather & Info Center - with more innovations coming in 2007. New introductions will include refreshed French- door refrigerators as well as the world's first dual-convection electric range and LG's first gas range.
"Complete offerings such as our new, full-kitchen series for 2007 demonstrate our leading role in the development of functional and stylish innovations, making LG the home appliance manufacturer that redefines expectations for our customers," Ahn said.
Mobile Phones. While not a primary focus of the Orlando dealer show, LG Mobile Phones has become the fastest growing brand in North America, Ahn said. LG has the number one position in CDMA market, both globally and in the U.S.
Ahn also noted that LG offers flagship phones at every carrier. "These premium models include our famous 'Chocolate' phone, one of the fastest- selling handsets ever introduced. To enhance our current offerings, we are focused on incorporating the latest technologies, such as HSDPA (3.5G) and EVDO, which enable technological convergence in the mobile communications arena," he said.
Premium Channel, Brand Strategy. Ahn concluded his remarks to dealers by reaffirming the company's commitment to the dynamic U.S. marketplace. "We recognize that our continued growth will come from the combination of product leadership, world-class supply chain management and top-class customer service." At the same time, he pledged to "continue our premium channel strategy that positions LG as a premium brand in all of our product categories."
"As digital convergence and networking technologies continue to transform our homes and our lives," Ahn concluded, "LG's goal is to develop products that realize this vision and embody our marketing theme: 'Life's Good.'"
