At CES 2023, LG Electronics revealed its ambition to remain competitive despite the prolonged economic downturn.

LG Electronics CEO Cho Joo-wan held a press conference at the global IT exhibition 'CES 2023' held in Las Vegas, USA on the 6th (local time) and announced LG Electronics' future vision and strategy to strengthen business competitiveness.

LG Electronics CEO Cho Joo-wan emphasized at a recent press conference, “The beginning and end of all innovation is the customer, and we will make the world smile through that innovation.”

At the meeting, President Cho stated, “Although this is a time when a perfect storm is expected, we will improve our business structure to create a competitive business structure so that we can continuously generate profits even during a prolonged recession, rather than just cutting costs in the short term.” To this end, he emphasized, "We will overcome limitations in existing businesses through changes in business models and methods, and pursue new businesses by consolidating internal and external capabilities through selection and concentration."

■ Customer Experience Expansion Results… Expectations for Battlefield Business

President Cho highlighted LG Electronics' innovations in expanding the customer experience. Examples include the OLED TV, which celebrated its 10th anniversary, the automotive components solutions business, and UP Appliances' "Mood Up Refrigerator."

LG Electronics' continued investment in its automotive electronics business over the past decade is particularly noteworthy. LG Electronics is developing a software-based, next-generation IVI (In-Vehicle Infotainment) solution that integrates in-vehicle infotainment systems. With mass production of electric vehicle drivetrain components supplied to global automakers, the automotive electronics business is expected to see significant growth starting this year.

In addition, LG Electronics is expanding its portfolio to include charging solutions, including the acquisition of a specialized electric vehicle charger company and the establishment of a production line within LG Digital Park in Pyeongtaek, Gyeonggi Province. This will provide an integrated solution encompassing software control and hardware charger development and production.

LG Electronics is expanding its UP appliance line, which adds new features even after purchase, overseas. It is also expanding its lineup of LG Objet Collection home appliances, designed with a minimalist home appliance concept. While pursuing a premium strategy, the company plans to strengthen its lineup for volume zones to respond to the cost-effectiveness trend. President Cho stated that in the future, in order to realize a 'Better Life', they will provide the 'First, Unique, and New' F·U·N customer experience and introduce more diverse smart life solutions.

LG Electronics is accelerating CX-DX and fundamental structural improvements from the perspective of "digital transformation for customer experience innovation." They explain that data-driven customer understanding is essential to continuously create new customer value.

Products such as the Mood Up refrigerator and 42-inch OLED TV were developed based on customer data, and LG Smart Park has an intelligent process system based on digital twins, AI, and big data, which has improved productivity by approximately 20% and reduced the defect rate. The application of DX has also been expanded to raw material purchasing, SCM, and services.

■ Expanding business portfolio to include not only hardware but also non-hardware areas LG Electronics is expanding its hardware-centric business to include non-hardware areas such as platforms, content, services, and solutions. By leveraging its resources across various fields, it is discovering customized services that can be offered alongside hardware.

LG is further enhancing its content and service business, spearheaded by webOS, its proprietary operating system that powers LG Smart TVs. LG ThinQ, its smart home platform, also goes beyond simple device integration to develop data-driven, customer-tailored products.

Meanwhile, LG OLED TV cumulative shipments have surpassed 15 million units. Led by the newly released OLED evo, LG Electronics is differentiating itself by incorporating various innovative technologies, including wireless AV solutions, transparency, bendability, and rollability.

LG Electronics is also accelerating its preparations for future core technologies. In particular, LG NOVA is making strategic investments in promising startups in North America focused on future technologies such as digital healthcare and the metaverse, striving to secure future growth engines. In digital healthcare, the company recently launched a non-face-to-face telemedicine solution in North America, jointly developed with Amwell, a US telemedicine company.

LG Electronics employees create customer value through a variety of experimental ideas. Examples include CIC (Company In Company), an in-house independent company, and 'LG Labs,' a project based on experimental ideas both inside and outside the company.

■ Innovation for a better life, together with customers
LG Electronics' brand mission is "Innovation for a Better Life." It embodies its commitment to creating a better future for life and the planet through innovative smart lifestyle solutions.

LG Electronics also emphasized its responsibilities and obligations as a global corporate citizen. Since 2011, LG has hosted the Global IT Challenge to help youth with disabilities improve their information literacy. It has also improved accessibility by expanding sign language, video, and audio manuals, expanding the range of Braille stickers, and operating sign language counseling centers.

To remain beloved across generations, LG Electronics will continue to expand its experiential spaces where Gen-Z can communicate, as well as lifestyle digital communities such as Gram, Hyeon, and StandbyMe.

We also continue our efforts to improve the environment and accessibility. Environmentally, we have set goals such as achieving carbon neutrality by 2030, switching all power used at our business sites to renewable energy by 2050, and using a total of 600,000 tons of recycled plastic in product development by 2030. To realize a circular economy, we will further expand the collection of discarded home appliances.

President Cho concluded by saying, “Innovation is not about its own sake, but about making customers smile by providing a truly better life.” He added, “LG Electronics will continue to innovate with the belief that the answer always lies with the customer.”