LG Group Affiliate Presidents Workshop to Be Held as On-Tact Meeting on the 22nd
[Asia Economy Reporter Ki-min Lee] Koo Kwang-mo, Chairman of LG, emphasized on the 22nd during an ontact (non-face-to-face) video conference workshop with company presidents that the difficulties in the business environment caused by the novel coronavirus infection (COVID-19) are becoming severe and that rapid response is necessary.
Chairman Koo and the presidents of LG Group affiliates held an ontact workshop in the morning to discuss the response direction for the post-COVID era. About 40 top executives from LG Group and its affiliates, including Chairman Koo, Vice Chairman Kwon Young-soo, LG Electronics President Kwon Bong-seok, and LG Chem Vice Chairman Shin Hak-cheol, attended the workshop. Unlike last year when they gathered at LG Inhwa-won in Icheon, Gyeonggi Province, and held a full-day session, this year’s workshop was conducted in a compressed format in the morning via ontact video conference due to the COVID-19 situation.
At the workshop, Chairman Koo said, “The business environment will become more severe, and difficulties are expected to continue for a considerable period,” adding, “There is always opportunity amid difficulties, so let’s respond quickly.” He continued, “The personalization trend, which has recently become a hot topic, will rapidly become widespread beyond niches in the entire market, and the existing approach of responding to average customer needs will no longer be chosen,” emphasizing, “Based on obsession with customers, now is the inflection point when we must change.”
At the workshop, LG’s top executives shared and discussed the analysis and outlook of LG Economic Research Institute regarding changes in the domestic and international economic environment caused by COVID-19. The LG Economic Research Institute forecasted that as the impact of COVID-19 continues, global economic difficulties will persist, protectionism will spread, deglobalization will accelerate, and instability in financial markets such as exchange rates will intensify. Restrictions on movement and trade will lead to demand restructuring, with increased demand expected in new areas such as ▲Home ▲Health & Hygiene ▲Ontact & Remote ▲Eco-friendly sectors.
Accordingly, LG’s top executives agreed that survival requires quickly responding by finding opportunities suited to each business’s characteristics and innovating business models, and decided to enhance supply chain flexibility by major markets. They also discussed accelerating the transition from competing to make good products to becoming a customer-centric company, further segmenting customers and markets to find specific needs and persistently pursuing execution methods. Regarding customer value realization, they exchanged opinions on thorough inspection of customer touchpoints at each stage from pre-purchase product information confirmation to after-sales service, and improvement plans using digital technologies.
Regarding the acceleration of DX (Digital Transformation), they reviewed LG Electronics’ application cases that utilize big data such as usage patterns and customer satisfaction in product design, product planning, and marketing decision-making. The top executives decided to actively support DX attempts by members who are taking on new challenges while utilizing digital data in management activities. Accordingly, from the second half of the year, LG plans to fully implement about 40 detailed DX tasks selected by about 20 organizations of LG affiliates and generate results.
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