[기자가 간다] LG Electronics, the world’s top home appliance maker

LG Electronics, the’largest’ since its inception in sales and operating profit in 2020
H&A Business Division, 5 years in sales and 6 consecutive years in operating profit
Stylers, dryers, dishwashers, etc.

LG Electronics recorded the highest performance since its inception despite the new coronavirus infection (Corona 19) last year. Sales exceeded 60 trillion won for 4 consecutive years, and operating profit reached 3 trillion won per year for the first time. The operating margin to sales was also 5.1%, reaching 5% for the first time.

The number one contributor to good performance was’Household Appliances’. Last year’s sales of the Home & Appliances & Air Solutions (H&A) division in charge of LG Electronics’ home appliancesFor 5 consecutive years, operating profit continued to rise for 6 consecutive years.

In particular, the annual operating profit exceeded 3 trillion won for the first time in history at 2.352.6 billion won. Thanks to this, operating profitThe rate was 10.6%, and it was the first time to record double digits.

Last year’s achievements were made possible by the big success of’Three Steam Appliances’ such as stylers, dryers, and dishwashers. Among them, the performance of’Trom Styler’ stood out. Trom Styler is a patented ‘TrueSteam‘ It is LG Electronics’ representative steam appliance with technology, and was first launched in the world in 2011.

With the recent spread of the’Zipcock’ trend caused by Corona 19, the deodorization and sterilization effect of Trom Styler has been highlighted, and its popularity has soared. In fact, the sales volume in the domestic market last year increased more than 30 times compared to 2011, the first year of its launch, and the largest sales volume ever.

The competitiveness of household appliances is expected to continue this year. This is because the operating profit has been ahead of the global No. 1 company’Whirlpool’ for 4 consecutive years, and the sales gap, which exceeded 2 trillion won in 2019, has been reduced to less than 600 billion won. For this reason, there is also an expectation that this year, we will be able to take a competitive advantage in annual sales and become a truly global home appliance company.

[이종욱 / 삼성증권 연구원 : LG전자에서 가전제품 사업을 담당하는 H&A본부는 올해에도 7%의 매출 성장을 지속할 것으로 생각합니다. 성장동력은 신가전과 온라인 판매 비중 상승입니다. 2020년 하반기에는 미국 시장이 좋아서 월풀이 다시 매출 역전을 했지만, 2021년에는 유럽시장을 공략하면서 LG전자의 1등 탈환도 가능해 보입니다. ]

This year too Amid the prevailing prospect that an uncertain market environment will continue, With the growth of household appliances, attention is paid to whether it can dominate the global market beyond the domestic market.

This is Hyung-sun Lee on Pax Economic TV.

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