'World's No.1 Home Appliance' LG Electronics, 1.6 Trillion KRW Sales Gap with Whirlpool in First Half of This Year

LG Electronics H&A First Half Sales 1.532 Trillion KRW
11.93 Trillion KRW Whirlpool Sales Gap '1.6 Trillion'
Expected to Lead in Sales and Operating Profit This Year
Strengthening Premium Strategy in Second Half

[Asia Economy Reporter Su-yeon Woo] LG Electronics, which recorded its highest-ever performance in the first half of this year, is expected to rank first in both annual sales and operating profit in the global home appliance industry for the first time in history. LG Electronics' Home Appliance & Air Solution (H&A) division has already firmly established its position as the global industry leader by surpassing Whirlpool by about 1.6 trillion KRW in sales in the first half alone.

According to industry sources on the 30th, LG Electronics' H&A division posted sales of 13.523 trillion KRW in the first half of this year, surpassing Whirlpool's sales of 11.93 trillion KRW (10.682 billion USD) during the same period by about 1.6 trillion KRW. Last year, LG Electronics exceeded Whirlpool by about 700 billion KRW in the first half, but Whirlpool made a strong comeback in the second half, preventing LG Electronics from securing the top spot in annual sales.

Since 2017, LG Electronics has led Whirlpool in annual operating profit, but until last year, it had not surpassed Whirlpool in annual sales. However, this year, LG Electronics is ahead by about 1.6 trillion KRW in the first half alone, more than twice the sales gap between the two companies last year (700 billion KRW), making it highly likely to surpass Whirlpool on an annual basis as well. In the first half of this year, LG Electronics' H&A division posted an operating profit of 1.5 trillion KRW, while Whirlpool recorded 1.4 trillion KRW (1.3 billion USD), with LG Electronics leading. If this trend continues, LG Electronics will become the first company to rank first globally in both sales and operating profit this year.

To strengthen profitability momentum in the second half, LG Electronics plans to enhance product competitiveness focusing on premium lineups such as the space interior appliance ‘LG Objet Collection’ and implement customized sales strategies by region and product.

Until the first half, the home appliance market remained strong due to pent-up demand and non-face-to-face consumption caused by COVID-19, but with the expansion of vaccinations in the second half, doubts have been raised about the continuation of such demand. LG Electronics plans to monitor risk factors such as a slowdown in demand for home appliances and rising raw material prices and respond with a strategy to strengthen premium products.

LG Electronics' space interior appliance LG Objet Collection has recorded double-digit sales growth due to steady popularity and plans to sequentially enter overseas markets such as Europe and the United States, starting with the brand launch in China last May. In addition, premium new appliance lineups such as clothing care devices, air purifiers, and dishwashers are also receiving positive responses, driving strong performance.

Kim Ikwon, Executive Director of LG Electronics H&A Business Management, said, "This year, we expect double-digit sales growth for the business division due to remarkable growth in overseas markets," adding, "Although pent-up demand will partially shrink next year and competition in advanced markets such as Europe and North America will intensify, we plan to maintain or expand the market share secured this year through additional growth."