LG and future of Smart Living: Brand’s vision for smart living and role of technology in transforming homes

The convenience and peace of mind that comes with Smart Home (or Smart Living) devices and appliances is driving the adoption of these products and solutions, subsequently spawning the development and growth of the Smart Living industry globally. Just imagine the convenience of being able to control and monitor your household appliances – like the refrigerator or washing machine – remotely via an app on your phone while away from the house?

With rising adoption of Smart Living solutions and products, the market is recording noticeable growth. Industry stats indicate that the number of active households with Smart Home (or Living) devices and appliances is expected to reach about 93.6 million by 2027 while the average revenue per installed Smart Home unit currently is expected to amount to $546.50. The revenue is expected to show an annual growth rate (CAGR 2022-2027) of 10.22%, resulting in a projected market volume of $52.19 billion by 2027 according to Statista.

And devices and household appliances manufacturers, having recognised this trend, are aligning their future plans and strategies to target and address the needs of this growing market. And among these companies keenly taking aim at the Smart Living industry is LG.

In early August, LG Electronics announced that it targets to become a Smart Living solutions company that connects and expands customers’ diverse experiences by 2030. To achieve the vision, the South Korea-based company plans to invest more than Kshs 5.48 trillion by 2030 for the qualitative growth of the business, including the advancing of the business portfolio led by the three new growth engines – that is transitioning to a platform-based service business model, accelerating B2B business, and procuring new growth engines.

The move will see the company record an estimated global annual revenue of upto Kshs 10.96 trillion even as it evolves from its current position as a top global home appliance brand.

Commenting on the new developments, LG Electronics CEO William Cho outlined the bold vision built on three growth engines: pursuing new platform-based service businesses through the advancement of the business portfolio, accelerating business-to-business (B2B) and exploring new business areas such as electronics vehicle charging and digital health.

The CEO identified electrification, sterilization and digitalization as key inflexion points LG will focus on to achieve rapid mid- to long-term growth.

“LG will continue to pursue its bold vision to transform and leap forward as a smart life solutions company that connects and expands customers’ various spaces and experiences, rather than resting on its current position as the best home appliance brand that provides quality products,” said CEO Cho. “We will establish a brand-new LG by reinventing the way we work and communicate toward this goal.”

Highlighting the company’s financial objectives, the CEO said: “We will achieve Triple 7, which encompasses an average growth rate and operating profit of 7 per cent or more as well as enterprise value to EBITDA ratio of 7. This is to raise sales from Kshs 7.12 trillion last year to Kshs 10.96 trillion by 2030, we will establish ourselves as a company that is properly recognized by the market and customers.”

Cho said LG will focus on the transition to the platform-based service business model, acceleration of B2B areas and procurement of new growth engines based on competitive edge as three pillars to focus on customer experience. By 2030, the proportion of these three pillars in sales and operating profit is expected to increase to more than 50 per cent.

The company plans to invest more than Kshs 5.48 trillion by 2030 for the qualitative growth of the business, including the advancing of the business portfolio led by the three new growth engines. This includes an R&D investment of more than Kshs 2.74 trillion, a facility investment of more than Kshs 1.86 trillion and a strategic investment of Kshs 766.88 billion.

The company is also accelerating the expansion of its B2B business, the CEO explained. LG’s rich understanding of customers as well as the know-how to communicate and empathize with customers that have been accumulated in the B2C business, which has seen continuous innovation over the past 65 years, will be fully expanded to commercial, mobility and virtual spaces.

Cho highlighted how LG is accelerating company-wide changes from corporate culture to brand communication at every customer contact point with the ultimate goal of becoming a brand that warms the hearts of customers and puts smiles on their faces while enabling customers to feel the value and philosophy of Life’s Good. The company is also driving ESG management activities to fulfil its responsibilities as a global corporate citizen.

And to further outline its Smart Living solutions vision, LG introduced its latest energy-efficient technologies and products to reaffirm its commitment to achieve a sustainable future at IFA 2023 in Berlin, Germany.

Addressing the media, Peter Verkempynck, the Senior VP of LG Air Solutions Europe B2B Sales, presented the cornerstone of LG’s electrification strategy – the advancement of LG heat pump technology.

Because it designs and manufactures its own core technologies and component solutions, LG is able to deliver appliances that offer unparalleled performance and reliability. The company’s development and manufacturing strategy is actively driving advancements in fundamental components, including the compressors and motors used in LG heating, ventilation and air conditioning (HVAC) systems.

Showcased to the media during the LG briefing at IFA 2023 was the LG Therma V R290 Monobloc Air-to-Water Heat Pump (AWHP) which comes with powerful heating capability to help create a warm, comfortable indoor environment within the household. The AWHP is equipped with an array of efficiency-boosting LG technologies and utilizes R290 refrigerant, which has a Global Warming Potential (GWP) of only three. The solution also ensures convenient maintenance with a remote support feature that enables quick software updates and the easy application of installer settings.

The heat pump technology applied to the Therma V R290 Monobloc can also be found in a variety of LG’s efficient home appliances, including its heat pump dryers and washer-dryer model. Employing two cylinders that work simultaneously to compress the refrigerant, the LG DUAL Inverter Heat Pump dryer achieves faster drying times and provides a better performance than a conventional dryer.

Then there’s the LG SIGNATURE second-generation washer-dryer which features the brand’s own inverter heat pump drying module that boosts energy efficiency, improves drying results and reduces fabric damage.

And to control and monitor these appliances even remotely, LG’s own smart home platform, LG ThinQ enables users to seamlessly connect all of their household appliances for a smarter, more convenient user experience. The ThinQ app makes it possible to effortlessly control each appliance, manage the entire HVAC system, and monitor energy storage and consumption in real-time.


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