I'm happy to be joined by Mr. Jeong Seok Lee, Vice President of the Grand Management Function Division at LG. Nice to meet you. >> Nice to meet you. >> Mr Lee, tell us about LG's globalization strategy. >> It's clearly stated in our brand slogan and promise is, life's good is our promise. And our overall brand strategy is aligned with that. As you may know, we are a technology company, a high tech company. And the innovation is the most important keyword. Therefore, our brand have to be shown in all of innovations we are making, and we are calling it, innovation for a better life. So for the product side, we delight provide consumers with most new products with a more beautiful way and a ease of use product, the type. So that is, our brand strategy which will be only provided by our innovative solutions. So our strategy is all about providing that kind of values. Actually so far, LG brand is more about the building brand awareness. So as you can see in the airport, there have been the advertising in the carts. >> And we sponsor- >> And you've been doing that for a very long time? >> Right, very long time. It was evolved into those global activities like Formula One sponsorship, those kind of things. So now we've got the plenty amount of the awareness from consumers. From now on, our mission will be building the more familiarity and premiumness among our consumers. That is the big change. >> Okay, we'd also like to understand LG's not only global but also regional and maybe even localization strategies. Can you tell us something about that too? >> Sure. As I mentioned, we have done the Formula One sponsorship kind of the activities. It's for the the color is. Now we are doing some of the separate sponsorships for each regions. For European countries, we are doing the football sponsorship. And for India and commonwealth countries, we are doing ICC cricket sponsorship. Also in the States, we are sponsoring the NCAA, the sports which has the most attention from the consumers. Some of the specialized events and sponsorship for each market is our current strategy, so there is the marketing point for product point of view. We are developing the very specific, very specialized products, which effectively address each country's customer needs. >> Well, that's fascinating. And is this also reflected in your product strategy? Do you emphasize different products per region or country? >> Yes. I think we believe we are one of the most advanced company in that area. So far, we have manufactured all of the products from Korea and tried to distribute it to the whole of the country for efficiency. However nowadays, we've found that by doing that, we cannot take any the price premiums or the differentiation point from consumers. Therefore, we are heavily investing in studying the every vocal needs in product planning side. So for example, one good example would be the Mosquito Away Air Conditioner. Which is invented in Indonesia first, and which is moved to Nigeria. And now it has been launched in India. Those kinda things are good examples. >> Okay, very good. [MUSIC] >> It's more, more, more and more. >> No, no, no, it's less, it is less. >> It's more, more, more and more. >> No, no, no, less, it is less. >> Presenting LG Air Conditioners, that now give you more protection with India's first Mosquito Away technology. And more cooling at an amazingly less power consumption. >> Cooling V. >> Saving V. >> Protection V. [NOISE] >> That's very interesting, so what are some of the collaborations that's needed to undertake that kind of undertaking? >> Yes, of course, it's Korean. We cannot fully understand each customer's need in each local country. Therefore, we have to get the support assistance from the local experts, and mostly, they are from the academic areas and local institutes. So for example, when we have launched our the first, the Mosquito Away Air Conditioner, we have the extensively worked together with the one very renowned university in Indonesia which is University. If you get the certificate from those kind of university, of course, this is very difficult to get it. That can help us a lot because as a foreign company, we have to persuade and make every consumers feel assured about our solutions. We'll address their many needs, and those kind of the certificate and the core work and core study research will be very critical. >> And this has to be done on a per country basis, I would think. >> Yes. For example, for the air conditioner things, we test certificate, we try to expand it to other countries. But even the neighbor country, they don't get it. They really want their certificate. So it takes time again. That's why we have launched the product in 2009 in Indonesia, and now, after six years, we can launch in India. So that is a difficult one, and it takes time. >> I think many people in the developed countries don't realize that in developing countries, the consumption situation may be very different, such as not having enough power. So how are those kinda things factored into the making of products, such as by LG? >> Right, it's really power is most critical resource for our product, electronics. >> [LAUGH] >> So electronic product without any electricity is nothing. So it's very critical, and we are experiencing many problems in developing countries like Indonesia, Nigeria, and India. So for example in Indonesia, there is some kind of quota for the electricity for each household. So we have reduced the power consumption of the air conditioner by sacrificing some of the cooling power. And it made a big hit. And it can be exported to the other regions and other countries in Nigeria. Most of the big household, they are using their own generators. But generator has their own capacity. Therefore, that kind of a concept can be easily adapted to the Nigeria. And it is since very well as a name of generator in [MUSIC] >> [SOUND] Is everything okay? >> Yeah, I mean we're just wondering how come your AC works even though you have a small- >> It's an LG Gen Cool AC, it works with a small generator. >> Introducing the new LG Gen Cool Inverter Air Conditioner, with built-in power saving technology that works even with a small generator. >> You also use a small gen? >> No, I'm buying that to reduce that size of my generator. [NOISE] >> And for India nowadays, we have recently developed one refrigerator, which consumes only the electricity consumed by two bulbs. >> Only? >> Only two bulbs, can you believe it? >> No, I can't [LAUGH] >> So it can cool the food at the level of the safety zone, but anyway, they can stay cool with in the refrigerator. So those kind of innovation can be only realized when we share our local knowledges each other inside of our company. >> So in a way I think what you're suggesting is that there's also a sorta societal understanding, sort of a social responsibility, kind of understanding that LG and companies have to have when they're marketing to specialty developing countries. >> Sure. When we developed the ideal, Mosquito Away Air Conditioner, is a big motivation was the one article about dengue fever. And thousands of people is dying with that disease in Indonesia. Therefore, our people just studied from death factors with a passion because it's very difficult, the project. And actually, at the initial stage, no one in our Korean factory in R&D, they didn't want to believe the fact. But the passion from the Indonesian subsidiary, it made it happen. And it can be easily adapted to other countries, for example in Nigeria, we got different disease, some malaria. So if we have the kind of passion and if that passion can be shared with other stakeholders like the university, the professors, and the research institute in local country, then we can get treatment that help from them. It cannot be explained in a rational way, but sometimes miracle happens. >> Okay, so final question. So what can you say is LG's localization philosophy? What is sort of the agenda that they have in terms of marketing and maybe in terms of brand? >> Yes, at the old days, we tried to meet every 100% of customers' needs in each market. And the the other side of the coin is it costs a lot. >> Okay. [LAUGH] >> We cannot do that. Therefore, our localization- >> So it's almost a double edged kind of phenomenon, to localize. >> So that was a trade-off, and we learned that. Therefore nowadays, our localization philosophy is any way we have to have very fundamentally strong base under that platform. We can customize some of them. And because even though the customers in different countries have different needs, however, their fundamental needs is very similar. So upon those the fundamental needs in the platform, we can add some ingredient on that to fulfill their specific needs. That is our philosophy. >> Okay, so perhaps the keyword is balance? >> Yes. >> Okay, thank you very much, this has been very insightful. >> Thank you.
