2023-06-25 04:42:27
India home appliance market size expected to grow to 27 trillion won by 2025
Cho Joo-wan, president of LG Electronics, visited India, etc.
▲CEO Joo-Wan Cho of LG Electronics (front) is inspecting the production line of home appliances such as refrigerators, air conditioners, and washing machines at the Noida plant in India.
[에너지경제신문 여이레 기자] LG Electronics is taking quick steps to target the ’emerging home appliance market’ in India. As the scale is expected to grow to 27 trillion won by 2025, it is a dimension to preoccupy the market quickly.
According to the industry on the 25th, LG Electronics CEO Cho Joo-wan visited India early this month and toured the New Delhi sales corporation, the Noida home appliance production line, and the R&D center to check ways to strengthen business competitiveness. LG Electronics celebrated its 26th anniversary in India this year. It has already been evaluated as having established a ‘locally completed business structure’ including sales subsidiaries, production subsidiaries, and R&D centers.
After discussing various new business expansion plans such as mobility, electronic blackboards, and edutech using IT solutions in New Delhi, President Cho also asked for localization strategies such as premium home appliances and TVs, differentiated customized services, and strengthening of online sales capabilities.
In addition, in Noida, they looked at home appliance production lines such as refrigerators, air conditioners, and washing machines, and took care of the progress of the ‘eco-friendly smart factory’. LG Electronics plans to expand production capacity for premium home appliances at its plants in Noida and Pune, India.
President Cho emphasized, “In India, which has a large market and considerable growth potential, LG Electronics will expand its dominant market share and expand its future business strategically.”
The reason why LG Electronics ‘aimed right’ at India is that the market size is growing rapidly. According to the Korea Trade-Investment Promotion Agency (KOTRA), the home appliance market in India is expected to grow from $10.93 billion (about 14.341 trillion won) in 2018 to $21.038 billion (about 27.127 trillion won) in 2025. .
Last year, LG Electronics’ performance in the Indian market actually increased despite sluggish demand for home appliances due to the global economic downturn. Sales of LG Electronics’ Indian subsidiary last year were 3.1879 trillion won, up 21.2% from the previous year (2.63 trillion won). Currently, LG Electronics has the largest market share in the Indian market in major home appliances such as air conditioners, and occupies more than 40% of the TV market.
LG Electronics is increasing the proportion of premium products in the Indian home appliance market. In the past, India was a market centered on low-end home appliances, but demand for premium products is increasing due to recent rapid economic growth.
An industry insider said, “Chinese consumers have a clear tendency to prefer domestic brands over foreign brands at the same price.”
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