Kim Hyo-eun Executive Director: "LG Labs, Gaining Attention Even from the President... Hoping to Establish the Thought 'LG Does This Too?'"

Interview with Kim Hyo-eun, Executive Director of Brand Management at LG Electronics Global Marketing Center

LG Labs Supports Market Validation and Marketing of Innovative Products
Fostering a Spirit of Challenge Within the Organization
"We Will Build a Company That Prioritizes Consumers' Better Lives"

"LG does this too?"

LG Electronics has begun an experiment for a Better Life. The goal is to break common sense, break the mold, awaken ideas, and propose better ways of living through experimental products and solutions. The name of the lab is 'LG Labs.' At the center of LG Labs, which prioritizes customer experience, is Kim Hyo-eun, Senior Vice President in charge of Brand Management at the Global Marketing Center (GMC). Kim, who joined LG Electronics in 2021, is an expert in brand marketing from the global company P&G. We met Kim in person to take a detailed look at LG Labs.

LG Labs is a marketing platform that selects the most experimental and innovative products and services at LG Electronics and provides rapid market validation and marketing and promotional opportunities for new business candidates. It is a concept that encompasses products, services, and marketing activities based on experimental ideas discovered in internal independent companies such as CIC (Company In Company). It was first unveiled as the LG Labs Pavilion at CES 2023 in the United States earlier this year, attracting great attention.

Kim Hyo-eun, Executive Director in charge of Brand Management at LG Electronics Global Marketing Center.
[Photo by LG Electronics]

Kim said, "LG Electronics develops various products and services, but many do not reach consumers." He explained, "We thought of LG Labs after discussing with various departments about how to let people know about these cool things."

Currently, LG Labs is selling unprecedented products and providing solutions such as the sleep management solution 'Breeze,' the shared mobility wireless charging station service 'Pluspot,' and the digital virtual shoes 'Monschcle.' Breeze and Monschcle are sold domestically, and Pluspot is operating in Suwon and Sejong. Pluspot is planned to expand soon to Ulsan, Jeonju, Incheon, Ansan, and Yongin.

Kim said, "At my previous company P&G, we continuously observed consumers' lives to discover insights like 'Wouldn't this be needed?'" He added, "We applied P&G's consumer-centric brand building to LG Labs, including communication marketing that delivers consumer insights to development departments and new types of marketing beyond typical TV or SNS ads."

As a result, LG Labs participated in global wellness festivals such as 'Wanderlust Korea 2023' and metaverse-linked offline music festivals like 'Isekai Festival.' They created spaces where people can experience LG Labs and naturally learn about what LG Electronics does. Observing and communicating with customers is an added benefit. To increase customer touchpoints, LG Labs plans to participate this month in a promotion offering unique lodging experiences at the Pyeongchang filming location of the HYBE original content 'In the SOOP BTS Season 2' and in October at Korea's largest camping and outdoor festival, 'Go Out Camp.'

Singer Big Naughty wearing LG Electronics' mind wellness solution 'Breeze'.
[Photo by LG Electronics]

Kim emphasized, "In large companies, it is difficult to have a mindset that 'failure is okay.' However, LG Labs values trying and experiencing, and continuously fosters a spirit of challenge within the organization that failure is not a problem." Therefore, the criteria for selecting LG Labs products are simple: whether they are experimental, innovative, or have the potential to improve customers' lives.

The selected products are not necessarily aimed at 100% launch. At CES, LG Labs planned to showcase the weight training solution 'Hover Gym' and indoor riding 'Excycle,' but they are still in preparation. Kim said, "(Products developed at LG Labs) are not forced to be completed by a certain time like other products," adding, "If consumer response is low, knowing that is also a valuable lesson, so we do not mind reactions like 'You showed it at CES, why hasn't it come out?'"

LG Electronics showcased a unique living space called 'Bon Voyage' for the first time at the global wellness festival 'Wonderlust Korea 2023,' held from the 26th to 27th of last month at Olympic Park in Songpa-gu, Seoul. 'Bon Voyage' is a customer-tailored living space with mobility, designed as an open duplex structure of approximately 6 pyeong in size. It allows customers to dock at their desired locations and enjoy a personalized lifestyle that harmonizes with the surrounding environment.
[Photo by LG Electronics]

The target age groups are also diverse. Kim cited an elderly couple interested in the mobile living space 'Bon Voyage,' first introduced at the Wanderlust event. He said, "After seeing a small newspaper article, an elderly couple living in Siheung came an hour before the event opened," adding, "They said they wanted to try it and thought it would be nice to place it as a second house in their yard, and they really liked Bon Voyage after seeing it." He mentioned, "Through LG Labs, there have been many opportunities to hear consumers' voices directly," and "We target not only Gen Z but also various age groups."

This free atmosphere at LG Labs was possible thanks to the support of Cho Joo-wan, President of LG Electronics. Kim said, "The president often asks about LG Labs and shows great interest," adding, "Because he supported and agreed with the spirit of LG Labs from the beginning, we were able to focus on trying new, innovative, and experimental things."

LG Labs' revenue model is still under review. Kim said, "We are internally considering it, but it is a bit early to talk about profitability or business viability," adding, "Rather than doing it for profit, it is a stage where the idea that LG is making new, innovative, and experimental attempts is spreading inside the company."

The ultimate goal of LG Labs is to build a positive image of LG Electronics. Kim said, "Through the LG Labs platform, we want consumers to perceive LG Electronics as a company that is positively innovative and challenging, striving for consumers' better lives, and realizing Life's Good."