In front of the LG Electronics Twin Towers headquarters in Yeouido, Seoul (Image courtesy of Yonhap)
SEOUL, July 14 (Korea Bizwire) — LG Electronics is making a strategic push into Europe’s mid- to low-end appliance market by collaborating with Chinese manufacturers from the product design stage — a first for the South Korean tech giant.
According to industry sources on July 14, LG plans to launch a new front-load washing machine co-developed with Chinese firm Skyworth, and a refrigerator developed with Okuma, as early as the end of this month in Europe.
The products are being produced through a Joint Development Manufacturing (JDM) model, in which Chinese partners participate in the planning and design of the products — a shift from LG’s previous use of OEM (Original Equipment Manufacturing), where partners handled only production.
The new appliances will still carry LG’s branding, but with shared design and engineering input from its Chinese partners. This marks the first time LG has adopted the JDM model for globally targeted products.
Priced around $500, the appliances are competitively positioned against local offerings from Chinese brands, which typically retail for around $400 in Europe. With LG’s brand reputation, analysts say the new lineup could appeal to cost-conscious consumers without compromising perceived quality.
LG is expected to expand its JDM collaborations to additional product categories and regions — including China, Southeast Asia, and Latin America — if the European rollout proves successful.
“This is a strategic move to tap into cost-efficient Chinese manufacturing and supply chains to better compete in price-sensitive global markets,” said one industry official.
Kevin Lee (kevinlee@koreabizwire.com)
