LG Electronics projected that, despite a recovery in the first half, global home appliance demand this year will slow in the second half and end with only slight annual growth.
Yu Jong-in, head of management for the Home Appliance & Air Solution (HS) Business Division at LG Electronics, said on the earnings conference call for the second quarter held on the 30th, "In the first half, the gradual demand recovery that began in the second half of last year continued, but in the second half, as demand in key regions slows, we expect global home appliance demand for the full year to post only slight growth."
Yu said, "In North America, given the impact of high interest rates, it is difficult to expect a full-fledged recovery in the dwellings market, so we see home appliance demand softening somewhat in the second half," adding, "Depending on the extent of the impact from inflation, we also expect to see polarization in consumption."
LG Electronics plans to respond with a two-track strategy by expanding differentiated products in the premium market and strengthening cost competitiveness and product lineups in the volume zone. In the relatively resilient Global South market, it will roll out region-specific products to expand the business.
Yu said, "To make the Global South another growth pillar in addition to our existing core markets, we plan to launch new product lineups with enhanced local product competitiveness."