LG Electronics Surpasses Whirlpool in First Half Sales, Eyes Annual Sales No.1 Spot

[Asia Economy Reporter Suyeon Woo] LG Electronics has surpassed Whirlpool in sales for the first half of this year, securing the number one position in the global home appliance market. Since 2017, LG Electronics has consistently outperformed Whirlpool in operating profit, but had lagged behind in sales volume. With LG Electronics overtaking Whirlpool in first-half sales, there is growing expectation that LG can achieve the top spot in the global home appliance market based on annual sales this year as well.

According to industry sources on the 24th, Whirlpool's sales in the second quarter of this year reached $5.324 billion (approximately 5.97 trillion KRW), a 31.7% increase compared to the same period last year. This figure exceeds market consensus ($5.05 billion) but is estimated to be lower than the sales of LG Electronics' Home Appliance & Air Solution (H&A) Business Division.

[Image source=Yonhap News]

According to LG Electronics' preliminary second-quarter results announced earlier this month, the H&A Business Division recorded sales of about 6.8 trillion KRW. This is the largest scale ever recorded for a second quarter, and LG Electronics had already surpassed Whirlpool in the first quarter with sales of 6.7081 trillion KRW.

Based on these estimates, LG Electronics and Whirlpool's first-half sales in the home appliance sector are approximately 13.5 trillion KRW and 11.9 trillion KRW respectively, indicating that LG Electronics leads by more than 1 trillion KRW. With first-half sales surpassing Whirlpool, expectations are rising that LG Electronics could achieve the number one position in the global home appliance market for the first time ever based on annual sales.

LG Electronics' recent strong performance is attributed to sustained pent-up demand from COVID-19 and a portfolio restructuring focused on premium appliances. As people spent more time at home due to COVID-19, consumers increased spending on home appliances and interior design, with space interior appliances like the "LG Objet Collection" gaining attention. Additionally, demand for new appliances such as dryers, clothing care systems, and air purifiers has increased, driving performance.

Kyungtak Noh, a researcher at Eugene Investment & Securities, said, "Although uncertainties remain regarding demand for home appliances and TVs due to resumed activities in the second half, consumption polarization is intensifying due to various subsidies and rising asset prices, which is actually broadening the demand base for premium products." He added, "An environment favorable to LG Electronics, which has a high proportion of premium appliances and OLED TVs, is being created."