LG Electronics is taking Pakistani home appliances market more seriously than ever before. The Korean consumer electronic company has decided to establish a network of premium brand shops as well as building a manufacturing facility in the country.
LG, in association with its local distributor, Momin Group, has established an SKD facility where it will start assembling LG’s home appliances by November 2016.
The company has established the facility in Sundar Industrial Area, Lahore which will provide employment opportunity as well as the transfer of technology.
“In the first phase we will start assembling LG’s LCD TVs and in the following months’ other products including refrigerators and washing machines will be further added,” Chairman of Momin Group, Abdul Wahid shared the plan.
The factory is a collaboration of LG and Momin Group which also manages the Dubai region for former as its distributor.
LG which is not included in the list of top sellers of home appliances in Pakistan has started focusing Pakistani consumer market which is growing steadily and offering a vast potential to global brands.
The President of LG Electronics Gulf FZE, Yong Geun CHOI looked highly convinced with the market during a one to one session at the launch of LG’s premium brand shop in Lahore where it is offering up to 60% discount on its imported products for a limited time.
While talking to MORE Yong said, “It is our 9th store and with the help of our business partners, we plan to establish a network of 25 brand stores by the end of 2016.”
Yong admitted that LG could not do well in past, but now we will make sure to play positively and create more demand for our products.
“We are doing a good job in other markets of the world of likes the Middle East and Africa. However, for Pakistani market, we have set a target to grab a 10% share by the end of this year”, Yong asserted.
In Pakistan, consistent electricity failure, and power fluctuation put the life of home appliances in danger, but LG plans to bring products that will have the ability to absorb electricity shocks.
Although the demand for consumer electronics items is proportionally rising in the country with the population, however, the strong roots of Chinese and smuggled products make the market favorable for the vendors who like to play with the price element.
Abdul Wahid differs as he thinks that Pakistani consumer market has a potential for all kind of products, from lower price range to premium items.
“Just recently Arcelik, a Turkish company, acquired Dawlance in Pakistan for USD 258 million which tells the story of potential in the local market,” Wahid explained.
LG and Momin Group are investing $10 million in Pakistan. The assembly plant with a workforce of 100 can deliver 45000 LCD TVs in a year.
Regarding the challenge of the smuggled product, Wahid told that LG products are backed by ten years of warranty which is enough to convince a consumer for the legitimate product.
Momin Group is the distributor for LG home appliances in Pakistan. Apart from electronic products, the group also manufactures edible oils and lubricants in Dubai region. Just recently, the company has started Momin Ghee Mills in Pakistan.