Revealed at the IFA 2016 press conference, “Expanding the home appliance領域 to include smart homes, household robots, and components”
Launch of IoT accessories compatible with SmartThinQ, such as LED lights, plugs, and motion sensors

LG Electronics CEO and Head of the H&A (Home Appliance & Air Solution) Business Division, Cho Seong-jin, held a press conference in Berlin, Germany on the 2nd (local time) and stated, “Although the business environment is challenging due to declining demand and intensifying competition, we will elevate the status of LG Electronics’ home appliances based on an advanced business structure and a stable profit structure.”

President Cho Seong-jin emphasized, “We will prepare for the future by strengthening our home appliance business capabilities through active investments in smart homes, household robots, and core components, as well as premium brands.”

The smart home roadmap released by LG Electronics extends from smart appliances such as washing machines, refrigerators, and air conditioners to household robots capable of deep learning and intelligence. LG Electronics is building a smart home foundation in stages by adding smart functions to general appliances with SmartThinQ™ Sensors, expanding the launch of new smart appliances, and introducing smart home hubs and IoT accessories such as the SmartThinQ™ Hub.


In addition, we are exploring the lifestyle robot business in conjunction with smart homes. We plan to introduce robot products that meet customer needs by integrating hardware, artificial intelligence, and content. Considering the high potential for household robots to be integrated with smart home appliances, the H&A Business Division is preparing for the future of the robot business.

The company is exploring business opportunities based on autonomous driving technology and robot platforms, and plans to expand its business scope beyond residential robots to include robots for building services. LG Electronics recently signed an MOU with Incheon International Airport Corporation to provide robot services for airport users. In addition to smart home appliances, LG Electronics will begin launching new accessories this year, including SmartThinQ light bulbs controllable via smartphone, SmartThinQ plugs that monitor power consumption, and SmartThinQ motion sensors that detect movement and notify users via smartphone. All of these products can be integrated with SmartThinQ sensors and hubs.

LG Electronics plans to lead the smart home market by leveraging open platforms, open connectivity, and open partnerships. Based on the SmartThinQ Hub, the company intends to connect not only home appliances sold by LG Electronics but also devices from other manufacturers by utilizing various IoT platforms, such as the AllSeen Alliance's 'AllJoyn'.

Accordingly, to promote open connectivity, all home appliances launched next year will be equipped with Wi-Fi. Given that home appliances are used for a long time, the plan is to differentiate itself from competitors by continuously providing various smart functions and services based on wireless internet. It has formed partnerships with Amazon, the world's largest e-commerce company; Qivicon, an IoT platform alliance created by European home appliance and lighting manufacturers; and Hanssem, a comprehensive home interior specialist.

Leading the global premium home appliance market through convergence

LG Electronics will launch its ultra-premium 'LG SIGNATURE,' which was successfully launched in the Korean market during the first half of this year, in Europe and North America later this year. Following supply requests from local business partners, the company plans to introduce the brand in Asia, including China, as well as Latin America and the Middle East next year.

LG is making significant investments in its premium brand, including launching a full-scale global marketing campaign starting with the introduction of an integrated 'LG Signature' experience zone in Germany. It is also entering various distribution channels, such as department stores and high-end shopping malls, in addition to existing home appliance stores. LG Electronics is expanding its 'Centum System™' appliances targeting the European market. Following the 'Centum System' washing machine launched in Europe during the first half of this year, the company plans to sequentially release 'Centum System' refrigerators and dryers by the end of the year. The 'Centum System' is LG's unique, differentiated innovative technology that enhances the durability and energy efficiency of premium home appliances while reducing noise.

We will also significantly increase investment in core components.

LG Electronics is also significantly increasing investment in key components such as inverter DD motors for washing machines, inverter linear compressors for refrigerators, smart inverter motors for cordless vacuum cleaners, and inverter compressors for water purifiers.

LG Electronics participated in 'IFA 2016' on its largest scale ever, showcasing everything from core home appliance components to finished products. The company conveyed the differentiated value that can be obtained by using LG's core components to manufacturers of premium appliances. Based on its world-class component competitiveness, LG Electronics plans to increase external sales of its core components. For compressors, external sales account for approximately 40% of total sales, while external sales of motors have recently begun.

LG Electronics has been building its built-in business by spearheading "Signature Kitchen Suite," an ultra-premium specialized built-in brand launched simultaneously in the U.S. and Korea last July, and "LG Studio," which was first introduced in the U.S. three years ago. LG Electronics plans to increase investment in ultra-premium brands while continuously introducing new built-in products.

'Signature Kitchen Suite' is scheduled to enter approximately 100 stores in the U.S. by the end of the year, focusing on premium retailers. The number of stores for 'LG Studio' will increase to over 1,000.