Report on 'Jatun' Electronics Store in Berlin on the 7th (Local Time)
On the 7th (local time), Saturn, a premium electronics store located on Kurf?rstendamm street in the center of Berlin, Germany, was bustling. The 10,000㎡ store is one of the largest electronics stores in Europe, attracting about 10,000 visitors daily. Various home appliances such as washing machines, dryers, and refrigerators are sold here, with energy efficiency labels like 'A+++' and 'A-20%' prominently displayed for consumers to see. This reflects the needs of European users who prioritize high-efficiency appliances.
The LG Electronics store located on the 3rd floor was no different. Along with prominently attaching energy rating labels on products, LG Electronics captivated European consumers with a new marketing method showcasing anamorphic 3D (a video technique that creates a sense of depth using optical illusions) content. A monitor was installed next to the washing machine to visually demonstrate LG’s core washing machine components, the 'AI DD motor' and '6 Motion.' The AI DD motor is a technology that directly connects the motor to the drum, significantly reducing noise and energy consumption.
LG Electronics captured the attention of European consumers with a new marketing approach showcasing anamorphic 3D (a video technique that creates a sense of depth using optical illusions) content. [Photo by Han Yeju]
The refrigerator also emphasized the 'Inverter Linear Compressor.' According to LG Electronics, the linear compressor, which moves in a straight line instead of rotating, experiences less energy loss during power transmission, making it more energy-efficient than conventional inverter compressors.
Kim Hyun-sik, head of the Living PD team at LG Electronics Germany, explained, "German consumers are meticulous and rational, calculating electricity bills directly through energy ratings. Their sensitivity to energy was already high, but it has increased further due to the Russia-Ukraine war."
On the 7th (local time), the entrance of the premium electronics store Saturn located on Kurf?rstendamm street in central Berlin, Germany. Photo by Han Yeju
Additionally, Europe is promoting the 'REPowerEU' policy to achieve carbon neutrality by 2030 by reducing energy consumption and dependence on Russian fossil fuels while expanding renewable energy. The demand for high-efficiency appliances among European customers has also grown due to greenhouse gas reduction policies and energy price surges caused by energy supply uncertainties.
At IFA 2024, LG Electronics is strengthening its European market strategy by exhibiting products such as a drum washing machine with about 55% higher efficiency than Europe’s highest energy efficiency rating of A, a dryer with 26% better efficiency than the A+++ rating and the lowest energy consumption among products released in the European market, and a refrigerator approximately 25% more efficient than the top energy rating of A.
The proportion of products equipped with 'InstaView,' which allows checking the inside of the refrigerator without opening the door, accounts for about 40% of the total refrigerator sales by LG Electronics in Germany. [Photo by Han Yeju]
LG Electronics is confident that not only high efficiency but also products with LG’s unique differentiated features are gaining popularity. Kim said, "Products equipped with 'InstaView,' which allows users to check the inside of the refrigerator without opening the door, account for about 40% of all refrigerators LG sells in Germany. Among InstaView refrigerators, about 3 out of 10 customers look for refrigerators with 'Craft Ice,' which produces spherical ice. Although these are priced about 10% higher than other products, Germans value product quality, so they perform well."
All-in-one washer-dryers are also gaining popularity. Since 2017, LG Electronics has been selling the LG Signature all-in-one washer-dryer with a new heat pump method and a common European capacity of 12kg washing and 7kg drying. Kim stated, "Washer-dryers account for about 10% of the German washing machine market and have consistently received positive responses. Including the more mainstream traditional heater-type washer-dryers, washer-dryers make up about 30% of LG Electronics’ washing machine sales in Germany."
LG Electronics also introduced a 25-inch washing machine for the first time at this IFA, recognizing European customers’ needs for larger washing capacity but smaller product size than the 27-inch models and reasonable pricing. Most washing machines in the European market are 24-inch models suitable for installation in narrow spaces.
LG Electronics plans to actively target the evolving European market centered on high-efficiency energy products. In the first half of this year, LG Electronics achieved sales of 6.7708 trillion KRW in Europe, a 10.9% increase from 6.1075 trillion KRW in the first half of last year, marking an all-time high. In particular, washing machine sales increased by about 4% compared to the first half of last year.
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