LG Electronics celebrates 1st anniversary of Future Vision 2030

LG Electronics CEO Cho Joo-wan. [Courtesy of LG Electronics Inc.]

LG Electronics Inc. is showing tangible results in its businesses as it celebrates the first anniversary of the Future Vision 2030 announced by its Chief Executive Officer Cho Joo-wan last year.

Over the past year, LG Electronics has achieved tangible results through business portfolio transition, including new business models with over 1 trillion won ($728 million) in sales.

In July 2023, LG Electronics announced the Future Vision 2030 with the goal of transforming into a smart life solution company that connects and expands various space and experiences of customers beyond home appliances.

LG Electronics unveiled strategies focusing on business to business growth, non-hardware (HW) business model, and securing new businesses.

The subscription service is LG Electronics’ key business area. It provides customers with desired home appliances and warranty services tailored to their lifestyles.

LG Electronics posted annual subscription sales of 1.13 trillion won in 2023

“Despite an average 15 percent decline in appliance demand last year, LG Electronics achieved growth by expanding its subscription service,” Cho said at the Consumer Electronics Show (CES) in Las Vegas, the United States, in January.

In June, 36.2 percent of the company’s major products sold at LG Best Shop stores were based on subscriptions.

With rising subscriptions, LG Electronics’ home appliance business is also growing rapidly.

In the first quarter of this year, LG Electronics Home Appliance & Air Solution division, responsible for the sale and manufacturing of home appliances, posted sales of 8.6 trillion won and an operating profit of 940.3 billion won.

Sales were up 7.2 percent year-on-year, marking the largest ever for a single quarter, and operating profit was the second highest ever.

LG Electronics’ webOS, the operating system running LG smart TVs, is also expected to become a successful business this year.

The platform-based service earned 740 billion won in sales last year and is projected to grow to more than 1 trillion won this year.

The webOS business is based on LG Channel, a Free Ad-supported Streaming (FAST) TV channel. Using data analyzing preferences and screen times, LG Channel offers ads tailored to viewers.