LG Electronics (LGE) ranked first worldwide with 15.8% market share after manufacturing and selling about 5 million canister vacuum cleaners. This type is used by 50% of households all over the world.
According to Fuji-Keizai Co.Ltd., Japanese Research firm, LGE (CEO and Vice Chairman S. S. Kim / www.lge.com) produced about 5 million canister vacuum cleaners this year and outperformed the second-most prolific vacuum cleaner maker by a margin of over one million units to capture the top spot in the global canister vacuum cleaner market except for upright vacuum cleaners that are mainly used in the North American market. The size of the global market for this type is estimated at 30 million units.
According to LGE, they achieved such remarkable success by meeting customers' needs in their products ahead of their competitors in the global vacuum cleaner market of more than 100 makers.
The firm implemented region- and nation-wide marketing approaches as the company sold colorful products to Hispanic consumers in North America, high-durability products in the CIS region, and compact and high-suction products in Japan. Such various region - specific functions and designs enabled LGE to increase its sales.
For the premium product "Cyking" LGE penetrated the global market using the "One global brand" strategy. As a result, Cyking sales have grown by 100% every year although the product costs more than 2 to 3 times as much as general cleaners. This demonstrates LGE's technological excellence in the global cleaner market. Two years after it penetrated the Korean cleaner market, LGE captured 30% market share.
On the other hand, since the company started the vacuum cleaner business for the first time in Korea in 1976, it has achieved a cumulative production of 25 million units. Likewise, the remarkable growth in high end of Cyking has enabled the company to post high growth not only in volume but also in profitability.
LGE believes it has achieved big success in the global vacuum cleaner market by listening to customers' needs. As such, after capturing the top spot in the global canister vacuum cleaner market, the company is set to develop upright vacuum cleaners actively targeting the North America market.
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