LG Elec likely finish the year at global No. 1 in white goods sales

[Photo provided by LG Electronics Inc.]

LG Electronics Inc. will likely safely command No. 1 in global white goods sales led by its premium Object Collection appliances that have indulged young consumers who are willing to spend hefty amount on home extravagance.

The Korean electronics maker’s home appliance and air solutions (H&A) division is projected to have raked in 20.4 trillion won ($17.2 billion) in revenue from January to September this year, according to industry sources. That would place LG Electronics ahead of U.S. home appliance giant Whirlpool whose sales are estimated at 18.8 trillion won for the same period.

The Korean firm already beat its U.S rival in the first half after generating 1.6 trillion won more in sales. The two home appliance giants are estimated to have raked in about the same amount in sales, each making about 6.8 trillion won, in the July-September period. At the current pace, LG Electronics is likely to close this year as the world’s largest home appliance brand by sales, overtaking Whirlpool that ranked No. 1 last year after earning 900 billion won more than the Korean firm.

Based on operating income, LG Electronics is already No. 1 in the world. It earned 470 billion won more than Whirlpool last year and 100 billion won more this year through June.

The Korean white goods behemoth’s rapid global expansion is largely owed to strong demand for its premium lines, especially the Object Collection that allows consumers to choose color and material for home appliances to better match with other furnishings.

Its Object Collection home appliance line has grown especially popular among young consumers since the launch in October last year. According to the company’s in-house consumer survey data released on Wednesday, consumers in their 40s or younger make up 70 percent of the company’s entire Object Collection sales. As for the company’s all home appliance sales, consumers younger than 50 years old make up a half and those older than 50 the other half.

The Object Collection has been showing steady growth in sales across the world since its launch while delivering high profits with a two-digit operating margin, the company said at the second-quarter earnings conference call. The global launch of the premium line was made in the second quarter this year, including China and Europe.

In addition to the Object Collection, LG Electronics has been expanding home appliance rental and maintenance services to win a greater market. It offers regular maintenance services for its water purifier, dish washer and other appliances that need regular clean-ups.

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