Plans to Strengthen Focus on the Global South
'Sri City Localization Strategy' Begins with New Factory in India
Ju Wan Cho, Chief Executive Officer (CEO) of LG Electronics, emphasized that the "Global South," which refers to developing countries outside the Western sphere, is "an emerging powerhouse and a key growth partner in the fields of consumption, production, and innovation." He outlined plans to accelerate targeting markets such as India and Southeast Asia through digitalization and localization strategies.
On May 15, CEO Cho stated on his social media (SNS), "LG Electronics is committed to long-term cooperation with the Global South through sustainable technology and localized solutions." He added, "The Global South, once considered a group of emerging economies, is now leading innovation and growth. This transformation will present LG Electronics with both challenges and opportunities for collaboration."
LG Electronics is targeting the Global South, including Asia?such as India and Indonesia?as well as Central and South America, and the Middle East and Africa. The company aims to capture new business opportunities in these regions and to ride the wave of their growth.
This year, CEO Cho personally visited subsidiaries in India, Indonesia, and Vietnam to oversee business-to-business (B2B) operations, including heating, ventilation, and air conditioning (HVAC), commercial displays, and high-efficiency systems, all based on mid- to long-term partnerships. He believes that as major companies flock to the Global South, which boasts high economic growth rates and abundant labor forces, LG Electronics will see increased B2B business opportunities in areas such as HVAC and smart factories that the company is nurturing.
CEO Cho identified the growth drivers of the Global South as ▲high economic growth rates, ▲global supply chain restructuring, ▲digital acceleration, and technological innovation. He said, "As incomes rise, demand for premium high-efficiency products is increasing, and India's eco-friendly building projects are driving demand for efficient HVAC systems and energy management. LG Electronics is meeting these needs with sustainable solutions."
In response to the growing number of experience-oriented consumers, LG Electronics plans to expand its subscription-based service models through partnerships with local telecommunications and fintech companies. At the same time, the company will further expand digital solutions based on connectivity and automation, such as AI home and smart factory solutions.
CEO Cho said, "To maintain agility and competitiveness, we are localizing operations in major markets, including India, Southeast Asia, and the Middle East." He added, "By managing local operations from product development to services, we will achieve faster market response, higher customer satisfaction, and stronger regional strategies."
As part of its recent localization strategy, LG Electronics has begun construction of its third factory in Sri City, India. This facility is expected to become a base for supplying home appliances not only to India but also to neighboring countries such as the Middle East and Bangladesh.
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