LGE drums up new beat in washing machine market.

(From The Korea Herald)

By Yang Sung-jin LG Electronics' boasts cutting-edge technology products but the item that really catches consumers' fancy is something often shoved out of sight - the humble washing machine.

Mobile phones, digital televisions and plasma display panels do not come close to the sales growth achieved by the company's drum, or front-loading, washers. In just four years, LG Electronics has gone from a new player in drum washers to the dominant seller, boasting a 70 percent market share with 315,000 units sold annually, with its top-ranked flagship TROMM model leading the soaring sales.

Moreover, the company has redefined the washing machine market in general. While total shipments of washers in Korea has hovered around 1 million units in recent years, a reflection of a mature sector where demand hardly budges, the drum model has increasingly become the preferred choice.

LG's advance suggests a textbook lesson in product adaptation, pricing strategy and profitability from a traditionally low-margin product.

The portion of drum-type models to total washer shipments in Korea rose to 45 percent last year from 23 percent in 2002. This year the figure is expected to reach 60 percent, or about 650,000 units, says Yoon In-duk, a manager at LG Electronics. Unlike conventional models that are typically placed in a storage room or bathroom, drum-type washing machines are smaller and fashionable and make less noise.

Apartment dwellers are now eager to put upscale drum washing machines in their kitchen alongside refrigerators, and magazines catering to homemakers often put LG's drum washers in their interior feature articles.