LG Electronics Inc. is consolidating its lead over Whirlpool Corp. as the world’s top home appliances maker, with $1 billion more in sales revenue than the US company in the first quarter.
The South Korean electronics giant’s home appliance and air solution (H&A) division posted 7.76 trillion won ($6.3 billion) in sales for the three months ending March 31, according to industry sources on Tuesday.
That’s 1.35 trillion won more than Whirlpool’s first-quarter home appliance revenue of $5.3 billion, or 6.41 trillion won.
Earlier this month, LG said the company’s overall first-quarter sales likely rose 18.5% to a preliminary 21.1 trillion won from the year-earlier period, with operating profit estimated at 1.88 trillion won, up 6.4% on-year. LG, which also makes TVs and vehicle components, didn’t provide detailed results for each division. Those figures will be available later this month when it announces its audited quarterly results.
In the fourth quarter of last year, LG lagged Whirlpool in terms of home appliance revenue. On a yearly basis, however, LG’s H&A division’s revenue surpassed that of the US company in 2021 to rank top in the segment for the first time.
Industry watchers said given the sales trend and pre-orders for LG’s home appliances, the Korean company will likely retain its leadership in the manufacture of home, kitchen and laundry appliances in the current quarter.
The LG Objet Collection brand also has a presence in the Russian market “In the first half alone, we expect to post 3 trillion won more than Whirlpool in home appliance revenue,” said an LG Electronics official. “We will keep our leading edge over the US company.”
HIGH-CLASS, SMART & TAILOR-MADE
LG’s decent performance is viewed as a rare feat for the Korean electronics manufacturer, which in the first quarter of 2014 ranked just fourth in the global home appliance sector with a market share of 13.7%.
Analysts said LG’s business strategy -- targeting high-end consumers with tailor-made functions equipped with smart technology -- has put the Korean company ahead of its bigger rivals.
LG’s InstaView refrigerator allows the user to tap on a panel of opaque glass to access several special features. With a simple touch, the technology turns the glass transparent, allowing the user to see beverages and other fridge content.
Boosted by the smart refrigerator, LG’s sales in North America and Europe rose to 29.74 trillion won in 2021, up 51.7% from 19.61 trillion won in 2019.
LG's air conditioner Whisen Tower At the center of LG’s strong home appliance sales is a suite of high-class consumer goods sold under the LG Objet Collection brand.
The premium brand, launched in 2020, features a “private appliance” concept, appealing to high-end consumers who favor tailor-made functions, design and color in accordance with their individual preferences.
LG’s robust sales also underscore the strong pandemic-led consumer appetite for TVs, washers and other home appliances amid stay-at-home guidelines for remote work and online learning.
LG said it plans to focus on premium built-in kitchen appliances equipped with artificial intelligence, the Internet of Things and other state-of-the-art technology to remain competitive in the home appliance market.
According to German consumer market tracker Statista, the global home appliance market is forecast to grow to $538.6 billion by 2024 from $448 billion in 2021.
Write to Ji-Eun Jeong at jeong@hankyung.com In-Soo Nam edited this article.
