LG sharpens focus on hypermarkets

LG and its distribution partner, Al Yousef Electronics, view hypermarkets as key sales outlets for LG's growing electronics portfolio.

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By  Robbie Greenfield Published  May 10, 2005

LG Electronics is increasingly focusing on hypermarkets as ideal sales vehicles for its growing range of electronics products. The news came as the Korean consumer electronics giant broadened its home appliance range with the launch of two high end refrigerators. “Retailers like Carrefour are very important for LG, with rapidly expanding retail sales and a definite trend towards hypermarket shopping in the region,” said Rakesh Shah, managing director at Al Yousef Electronics, an LG distributor. “Because of the growing footfalls in the big outlets, we now have a dedicated department at LG especially for hypermarkets.” The company hopes that its latest offerings will help hypermarkets bump up takings in their electronics departments. LG has used its digital TV expertise to install one of the new fridges with a 13 inch LCD display, which can be used to watch satellite and cable channels. The fridge can also receive radio broadcasts. The company has also introduced a three-door fridge with adjustable bins and drawers, and a tilting freezer door for easier accessibility. The model uses five digital sensors to keep the temperature at the correct level. The fridges are available in a range of colours or a titanium finish and range in price from AED4,800 to 5,850. “We are targeting 30% growth in the refrigerator segment this year, aiming for combined sales of US $42 million in refrigerators in Oman, Qatar, Bahrain and Kuwait. With 16% market share in the UAE, LG is the number one brand in the refrigeration segment,” explained C H Lee, president, LG Gulf. Carrefour’s daily footfall of around 15,000 provides a huge incentive for electrical appliance companies to sharpen their focus on hypermarkets. “Growth figures for these outlets are enormous, about 75%,” says Shah. “For this reason alone, they are a particular focus for LG,” he adds.

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