LG Electronics is presenting an advertisement that promotes the company rather than individual products for the first time in 24 years. The successful transition to a ‘Smart Life Solutions’ company is conveyed through a video centered around the theme ‘Connecting Space and Future.’
Last July, LG Electronics announced its commitment to transforming its business practices, expanding beyond home appliances into mobility and business spaces, thereby achieving innovation and growth simultaneously.
The ‘Connecting Space and Future’ campaign aims to introduce this journey and business model to customers in an accessible manner, showcasing LG Electronics as an innovative enterprise. The video released in the campaign portrays LG’s transformation into a ‘Smart Life Solutions’ company through its evolved business portfolio.
Beginning on the 26th, the campaign video will be released sequentially and includes three episodes, such as the comprehensive edition and segments focusing on mobility and air solutions. This marks the first time since the ‘Power to Change the World, Digital LG’ campaign in 2000 that LG has introduced a campaign video focusing on the company rather than its individual products.
The ‘Connecting Space and Future’ message highlights the innovative ‘Smart Life Solutions’ offered by LG Electronics in every space of everyday life. This includes ▲ Mobility Solutions providing differentiated experiences in transportation environments ▲ AI-powered Smart Home Solutions offering personalized environments ▲ webOS Solutions connecting various devices through a single platform ▲ Core Technology (Core Tech) HVAC solutions essential for future industries.
Subsequent individual videos introducing mobility solutions will focus on the themes of Transformable, Explorable, and Relaxable experiences, showcasing LG’s expansion of home experiences into mobile environments and spotlighting the electric vehicle charging business it is nurturing as a new venture.
The air solution video will demonstrate LG’s excellent HVAC (Heating, Ventilation, and Air Conditioning) technology, including chillers and heat pumps, and illustrate LG’s efforts to create ‘global solutions’ in every customer space, from residential to commercial areas.
Through this campaign, LG Electronics aims to actively communicate its innovative efforts to expand its presence beyond ‘Electronics is LG’ into various business areas while enhancing the refreshed, youthful, and dynamic brand image of LG.
Celebrating the one-year anniversary since proclaiming its vision to change into a ‘Smart Life Solutions’ company, LG is accelerating its journey towards realizing this vision through portfolio diversification.
In pursuit of this vision, LG is expanding its achievements based on three new growth pillars: ▲ B2B (Vehicle, HVAC, etc.) ▲ Platform-based service businesses (Subscription, webOS-based advertising/content, etc.) ▲ New ventures (electric vehicle charging, etc.).
Notably, LG’s VS Division, responsible for its automotive business, surpassed KRW 10 trillion in revenue last year, elevating itself to the ranks of ‘star business units.’ In Q2 of this year, it recorded sales of KRW 2.6919 trillion and an operating profit of KRW 81.7 billion, setting a new record for maximum performance across all previous quarters.
The commercial HVAC business, driven by high-efficiency chillers, is also quickly growing, contributing to portfolio diversification. LG boasts a world-class level of competitiveness across the entire value chain of HVAC solutions, actively targeting back-end industries such as AI infrastructure.
This year, LG began fully implementing smart factory solutions that integrate manufacturing and production data with AI and digital transformation (DX). The smart factory business provides expertise and technology in building and operating smart factories by supplying production consulting, development of methods/equipment, and training of production technology personnel. This year, the expected order volume for LG’s smart factory solutions supplied to external companies is anticipated to be around KRW 300 billion.
With balanced growth in B2B sectors such as automotive and HVAC, LG’s B2B business revenue accounted for approximately 35% of total revenue in the first half of this year.
Success is also becoming visible in new business models. The subscription business, which combines products and services, saw total sales surpass KRW 1.13 trillion last year, establishing itself as a unicorn business.
Additionally, the webOS-based advertising/content business is expected to achieve sales exceeding KRW 1 trillion this year by expanding its customer base across IT, in-vehicle infotainment, and more.
LG is rapidly shifting its business direction from a traditional product-centric model, where revenue and profits only arise at the point of sale, to a circular model that continuously generates income through intangible businesses such as subscriptions, content, and services.
Contact: 이상진 daedusj@autodiary.kr