LG Electronics sets ambitious B2B revenue goal to offset declining consumer demand

Date:
Sun, 10 Nov 2024 07:03:00 +0000

Description:
LG Electronics is shifting focus to B2B operations with key areas including digital signage, EV chargers, and medical monitors to offset consumer demand decline.

FULL STORY ======================================================================LG Electronics wants to expand its B2B offerings The goal is to hit $7.5 billion in B2B revenue by 2030 The tech giant is looking to expand into digital signage and medical monitors

LG Electronics has revealed plans to intensify its focus on the B2B sector as the company seeks to offset declining demand in consumer electronics.

The company's strategy aims to boost its B2B revenue to KRW 10 trillion (approximately $7.5 billion) by 2030, with projections indicating that B2B sales could account for 45% of total revenue by that time. This shift is driven by the stability of B2B operations compared to consumer markets, as well as the potential for long-term customer relationships that foster mutual growth.

LG plans to enhance its offerings in key areas such as digital signage, hospitality solutions, and medical monitors , while also expanding into new sectors like electric vehicle chargers and smart factory solutions. LG B2B transition

LGs CEO, Cho Joo-wan has since revealed the companys ambitious vision of achieving 100 trillion won in annual revenue by 2030. Since Cho took over as CEO in 2021, the company has actively pursued growth in its B2B operations to offset challenges in the consumer segment.

The areas of focus for LGs B2B expansion include automotive electronics, heating and ventilation systems (HVAC), smart factory solutions, built-in appliances, and mobility technologies. Among its four business divisions, the Business Solutions unit plays a crucial role in driving growth through products such as commercial displays, EV chargers, and robots.

The Business Solutions division will further solidify LGs position in the commercial display market by enhancing its digital signage portfolio. Since 2019, LGs information display segment has grown at an average rate of 7% annually, demonstrating consistent demand for its products.

The companys strategy includes emphasizing premium fine-pitch LED displays, such as All-in-One and Micro LED models. While it plans to introduce new AI-powered Micro LED displays later this year, it also aims to improve its hospitality TVs by adding features such as Google Chromecast and Apple
AirPlay for better connectivity.

Furthermore, the South Korean manufacturing giant will expand its cloud-based services through the LG Business Cloud platform, while deepening collaborations with global partners like Ricoh to develop enterprise solutions.

LG Electronics is also focusing on new growth opportunities in electric vehicle (EV) charging systems and medical monitors, aiming to become a
leading player in both markets. The company has set a goal to capture 8% of the US fast-charger market by 2030 and has opened an EV charger production facility in Texas to support this effort.

It currently offers six types of EV chargers and plans to roll out additional models later this year, including a 350 kW ultra-fast charger for North America and two slower chargers30 kW and 7 kWtargeted at the European market. LGs partnership with ChargePoint, a major provider of EV charging solutions
in North America, is expected to bolster its product offerings and drive innovation.

In the medical technology sector, LG aims to become one of the top three global providers of medical monitors within the next five years. Despite high entry barriers due to strict medical regulations and high display standards, LG has steadily grown its presence in this niche market.

Since entering the medical monitor space in 2016, the company has expanded
its product line at a double-digit annual rate across North America and Europe. LG currently offers 14 different medical monitors, including
clinical, diagnostic, and surgical models, along with six types of X-ray detectors (DXDs) in 50 countries.

According to market research firm Omdia, the global medical monitor market is projected to reach $2.5 billion by 2030, presenting LG with significant opportunities for growth.

LGs ambitious B2B transformation reflects its strategy to adapt to shifting market trends and reduce its reliance on consumer electronics, however, it will face some challenges and will need investments in innovative solutions and strategic partnerships.

In a press conference, Jang Ik-hwan, president of LG Business Solutions Company at LG Electronics said the company is open to mergers and
acquisitions to foster its new B2B growth engines.

Going forward, we will leverage this expertise to offer tailored services and differentiated solutions to our business customers, further cementing our reputation as a trusted partner in the competitive B2B market.

LG Business Solutions is seeking to double its current revenue, reaching KRW 10 trillion by 2030I cant comment on the exact timing but the company would (again) invest in a new growth business like its investment in Bear Robotics Inc. when we are ready," Jang added.

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Link to news story: https://www.techradar.com/pro/lg-electronics-sets-an-ambitious-b2b-revenue-goa l-of-usd7-5-billion-to-offset-declining-consumer-demand


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