LG has forayed into premium consumer electronics (CE) and home appliances (HA) categories with the launch of a new line of products. The new range under the brand name ‘Signature’ has already rolled out in Korea, Europe and the US. The range is expected to debut in India in July though pricing details have not yet been revealed.
Ken Hong, Senior Director (Broadcast/Global Communications Team) at LG Electronics, said, “LG is not about cheap products but about competing with global brands and innovation. Signature is our first foray into premium products.”
The line currently includes OLED TVs, refrigerators, washing machines and air purifiers with more product categories to be added in the future.
According to Sean Yoo, Marketing Director, Brand Strategy Task, Global Marketing Office at LG Electronics, the premium CE products market represents around 1–2% of the total CE market. This can, however, go as high as 8–10% of the CE market for developed markets like the US and Europe.
“The positioning of the Signature line is completely different. Our go-to market strategy will revolve around premium properties such as malls unlike our traditional products for which we use multi-channel retail outlets,” he said.
Speaking about the marketing strategy that LG is adopting for Signature, Yoo said the company will use a mix of targeted television ads by buying time on premium channels and TV properties as well as business, lifestyle and fashion magazines to reach their target audience.
“In USA we did an influencer marketing campaign. Maybe we will do something similar in India in July,” he added.
Though he would not give details about the marketing budget, Yoo said the budget would be proportionate to the size of the premium CE product market, which is quite small.
“We want to use marketing that is efficient and economical. For premium products, marketing needs to be differentiated. We cannot just take a full page ad or do a TVC,” he said.