Upmarket phones key to European market for LG

[The Korea Herald] Upmarket phones key to European market for LG | Article and Story
In the last two years LG Electronics has shifted its brand image from low-end to high-end in the European market, as highlighted by the success its Chocolate phone, Shine phone and the top-end model Prada Phone.


An LG executive said that building close relations with diverse wireless operators was the key to strengthening the Korean company's mobile business in Europe, especially in terms of localization and research and development.

"LG's localization strategy is to better prepare new products and get close to customers," Dominique Oh said in an interview with The Korea Herald. Oh is vice president of the mobile communication overseas marketing division and is in charge of Europe and the Commonwealth of Independent States.


For better communication between LG Electronics and European mobile operators, LG officials often take operators to LG's R&D centers in Paris, St. Petersburg and a design center in Milan to show how the phone manufacturer's technologies can be synchronized with wireless providers' actual services.

"In a three year range of products, we try to match our own survey with operators regarding new colors or new design variations," he said.


In Europe, where many people must have already used a variety of mobile phones, mobile business is becoming complex because people have a lot of expectations and criteria depending on their age, gender and social status, Oh said. "With five different mobile operators in 20 different countries, each with a different subsidy system, our strategy is to introduce new products simultaneously across the Europe. Before, we used to introduce a new product to one (market) and move on to another," he said.


Commenting on lackluster 3G services in Europe, Oh said that it is taking more time to explain the benefits of 3G to customers than market analysts had guessed two years ago.

"LG will provide a full 3G line-up in 2007. Analysts say 30 percent of Europeans are going to be 3G users by (the end of) this year," he said.


Meanwhile, Britain's Prince Andrew on Tuesday visited LG Electronics Europe headquarters in Slough, near London,

and spoke highly of the Prada and Shine phones, LG officials said.

Prince Andrew, who is serving as the United Kingdom's Special Representative for International Trade and Investment, held an hour-long meeting with LG over mobile business.

"His visit proves that British people have high expectations and an interest in LG Electronics. The United Kingdom will (play an important role) in targeting the European market," said James Kim, president of the European headquarters of LG Electronics.



By Kim Yoon-mi

(yoonmi@heraldm.com)



2007.05.10