South Korea's LG Electronics Inc. is targeting sales growth of around 11 percent for its China unit this year, as the firm aims at the country's high-end consumer products market, a company official said on Saturday.
Since last year, LG Electronics has been increasingly focusing on the high-end consumer market in China, Jinse Lee, spokesman for LG Electronics in China, told Reuters.
"We had sales of $9 billion in China in 2006, and this year our target is to reach $10 billion," Lee said.
South Korea-based LG Electronics posted sales of 23.2 trillion won ($25.23 billion) in 2006. It is expected to post a 6.5 percent jump in sales to 24.7 trillion won this year, according to 26 analysts polled by Reuters Estimates.
"We expect growth in the market for high-end consumer products to accelerate, given the upcoming Beijing Olympics in 2008 and the Shanghai World Expo in 2010," Lee added.
LG Electronics is one of hundreds of companies, local and foreign, taking part in SINOCES, one of China's largest consumer electronics shows in the eastern port city of Qingdao.
The company has 13 production centres and employs some 38,000 people in China, Lee said.
LG Electronics said in May that it will supply 32-inch plasma panels for the Chinese TV market, as the loss-making flat screen division struggles to diversify its customer base.
The move comes as LG -- the world's second-biggest plasma display maker after Japan's Matsushita Electric Industrial Co. -- cuts output and reviews steps to restructure its plasma display screen business amid falling panel prices and growing losses.
Plasma screens, which once dominated the 40-inch-and-larger TV market with cheaper price tags and technical advantages, have been pummelled in a price war with liquid crystal display (LCD) screens backed by larger production lines and economies of scale.
Analysts expect plasma makers can enjoy price competitiveness for a while in the 50-inch-and-above segment, but the market has yet to grow as flat-screen TV demand is still focused on smaller sizes, particularly in emerging markets.
Source: http://www.sharekhan.com/News/DetailedStory.aspx?NewsID=a47a7c9a-76f7-4755-82fd-035805448bfc
Since last year, LG Electronics has been increasingly focusing on the high-end consumer market in China, Jinse Lee, spokesman for LG Electronics in China, told Reuters.
"We had sales of $9 billion in China in 2006, and this year our target is to reach $10 billion," Lee said.
South Korea-based LG Electronics posted sales of 23.2 trillion won ($25.23 billion) in 2006. It is expected to post a 6.5 percent jump in sales to 24.7 trillion won this year, according to 26 analysts polled by Reuters Estimates.
"We expect growth in the market for high-end consumer products to accelerate, given the upcoming Beijing Olympics in 2008 and the Shanghai World Expo in 2010," Lee added.
LG Electronics is one of hundreds of companies, local and foreign, taking part in SINOCES, one of China's largest consumer electronics shows in the eastern port city of Qingdao.
The company has 13 production centres and employs some 38,000 people in China, Lee said.
LG Electronics said in May that it will supply 32-inch plasma panels for the Chinese TV market, as the loss-making flat screen division struggles to diversify its customer base.
The move comes as LG -- the world's second-biggest plasma display maker after Japan's Matsushita Electric Industrial Co. -- cuts output and reviews steps to restructure its plasma display screen business amid falling panel prices and growing losses.
Plasma screens, which once dominated the 40-inch-and-larger TV market with cheaper price tags and technical advantages, have been pummelled in a price war with liquid crystal display (LCD) screens backed by larger production lines and economies of scale.
Analysts expect plasma makers can enjoy price competitiveness for a while in the 50-inch-and-above segment, but the market has yet to grow as flat-screen TV demand is still focused on smaller sizes, particularly in emerging markets.
Source: http://www.sharekhan.com/News/DetailedStory.aspx?NewsID=a47a7c9a-76f7-4755-82fd-035805448bfc