LG 2003 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2003 LG annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

LG Electronics Inc._Annual Report 2003 43
I Love China
2003 was a meaningful year for LG Electronics as it marked the tenth anniversary of doing full
fledged business in China.
Since incorporating a joint venture in Huizhou City, Guangdong Province, we have firmly
built the foundation to gain significant market share by setting up 14 production facilities and 9
regional sales headquarters throughout China. Also, we have completely localized our
operations in China by recruiting capable local employees and establishing R&D centers in
Beijing and other locations with incorporated production facilities.
Although squaring off against top tier multinational firms as well as the ambitious Chinese
companies with their economies of scale is never easy, our consistent strategy for the past 10
years has allowed us to outperform our competitors.
For instance, we used the unexpected SARS epidemic as an opportunity to actively launch
“Health Marketing” and “I Love China” campaigns and bring our company closer to our
Chinese consumers. We have also prepared against various risks such as the revaluation of the
exchange rate.
On the back of a decade of experience in China, we see 2004 as a stepping stone to a new era of
growth. Even though we expect our competitors to step up their activities in the Chinese market,
we believe that our success through the good and bad times gives us the strength and experience
to achieve the following goals.
First, we will continue to pursue “Fast Growth” strategy in China. We will apply our
successful business experiences gained in the metropolitan areas to middle and small sized cities
in order to continue our “Fast Growth” strategy in China. To this end, we will rapidly increase
our local operational manpower and encourage local R&D researchers to develop product styles
that appeal directly to the domestic market.
Second, we will improve profitability and enhance our brand image by continuously
promoting our advanced business structure. We aim to strengthen our brand image as a
high-end total appliance maker and boost profitability as well by focusing on increasing the
portion of premium products like PDPs and LCDs in our product portfolio. Moreover, using our
experience gained from the Chinese market, we are working hard to become a leader in CDMA
and GSM handsets as well.
Third, we will focus on strengthening our competitiveness and cultivating competent
employees capable of implementing our full-scale initiatives. In order to advance our
competitiveness to the next level, we will take our accumulated know-how gathered from 14
local production subsidiaries and continue to improve our entire organization using innovative
|||||||Message from China |||||||