LG Electronics aims to go global with smart home solutions

The Korean consumer appliance giant presents built-in kitchen set, energy-efficient prefab housing at IFA 2023

Lyu Jae-cheol, head of the Home Appliance & Air Solution Company at LG Electronics speaks in a press conference held on the sidelines of this year's IFA, one of the largest consumer appliance trade show, on Saturday.

BERLIN -- LG Electronics expressed ambitions to go global with its smart home solutions, including its built-in kitchen package and energy-efficient prefabricated housing technology at this year's IFA in Berlin, one of the world's largest consumer appliance trade shows.

"We will integrate all our innovative home appliance and energy technologies and other upgradable appliances to offer a smart home solution," Lyu Jae-cheol, head of the Home Appliance & Air Solution Company, said Saturday during a press conference held on the sidelines of this year's IFA. The trade show is being held in Berlin for five days from Friday.

"We will change the paradigm of the global home appliance market for more customers to experience the convenience that they have never experienced before, in their homes."

Among its many smart home solutions, LG exhibited its newest built-in kitchen package, which has been specially designed for European customers, with the goal of expanding its presence in the market to supply about 40 percent of the world demand. According to Euromonitor, Europe's built-in market marked $24.4 billion in 2022.

"Europe can be described as the home ground for built-in appliances. We tapped into the North America market with our built-in sets earlier and have been preparing to enter the European market for a long time," Lee Hyun-wook, head of LG's Built-in and Cooking Business division at LG said at the press conference.

"From our thorough preparation, we seek to become a top-tier brand in Europe in the coming years."

As the way to compete with the established local brands there, LG said it will make sure its appliances are clearly better in performance. The tech giant said it would also build a strong cooperative network with local furniture companies and establish a firm customer service system.

LG's latest built-in kitchen package comprises of an InstaView oven, QuadWash dishwasher, downdraft induction hob, bottom-freezer refrigerator and microwave oven.

LG has also introduced its prefabricated two-story home LG Smart Cottage for the first time at the IFA, which embraces all of the tech giant's smart home solutions. The prototype of the small modular home was first unveiled in Jincheon, North Chungcheong Province, earlier this year.

The house has 4-kilowatt solar panels mounted on its roof and is fully equipped with all of LG's home automation features using the LG ThinQ application.

"I believe we will be officially launching Smart Cottage first in Korea and bringing it to overseas markets from then on. We are currently in discussions with many regional governments in Korea for collaboration," Lyu said.

According to Lyu, clients in various countries and regions including Europe and Australia, have shown interest in LG Smart Cottage at the IFA.

"In Korea, customers are interested in owning LG Smart Cottage as a second home. But from what I observed, European customers view it can be used as their first house," Lyu said.

Lee Jae-sung, head of LG Electronics’ air solution business division, also explained that LG Smart Cottage was "more than" just a prefab house -- it represents LG's low-carbon technologies.

"It is more than us selling a prefab house to the customers. The house is concentrated with LG's technologies, generating energy on its own, and saving them in the energy storage system to create an off-grid experience to run the house and power electric vehicles by self," the LG official explained.

With the goal to make global presence in heating, ventilation, and air conditioning, LG has also showcased its Air-to-Water Heat Pump, also installed in LG Smart Cottage.

Unlike other home appliances, the landscape of HVAC industry is completely different by region, greatly depending on the market's region, the country, climate and residential environment, according to Lee.

"Each region has established local brands holding dominance. If Carrier, for instance, is the prominent brand dominating the US market, there is no Carrier in Europe, there are local brands like Groupe Atlantic, while Asia would have brands like Daikin," Lee said.

"So, to gain a competitive edge tapping into the European market, LG will focus on the core technology and thoroughly analyze the market to meet the regional demands."

By Jo He-rim(herim@heraldcorp.com)