Entry #9 20300156

LG designs future in product appeal
May 07, 2008

LG Electronics cashed in big around the world with its popular design-oriented Chocolate and Shine phones. Now LG Group’s chairman is looking to replicate the phones’ success — and he’s put up the cash to make it happen. Chairman Koo Bon-moo has decided to invest 100 billion won ($98.4 million) this year into upgrading the overall design of LG products, the company said in a press release.

This marks LG’s biggest investment in the design sector.The company spent 78 billion won and 88 billion won on design in 2006 and 2007. In addition, Koo announced that the company will add about 700 designers to its workforce in a meeting with 20 key company officials.“By doing so, we can enhance designs for all LG products, not a few items in particular,” Koo said. During the meeting, representatives from LG Electronics, LG Chem and LG Household and Health Care said they will research consumer preferences worldwide based on their gender, age, class and region. LG Electronics heads the design of mobile phones and home appliances, while LG Chem works on interior products such as artwork-inspired wallpapers and window frames. LG Household and Health Care will focus on the design of cosmetics containers. These three LG affiliates launched the LG Design Council last July to reflect Koo’s design-oriented policies.“LG earned more than 80 design-related awards last year, compared to 58 in 2006,” an LG official said.“Companies no longer compete over price, quality and technology. Design makes you a global leader. After all, most people think quality and design go hand-in-hand.”

so@joongang.co.kr

As you know, there are some telecom's companies such as SK telecom, KTF, LG telecom etc. These companies has many members but LG's members are just a few. This mean LG has the smaller influencing power than other company. However, so many people want LG's cell phone not service. Because, LG's cell phone has nice design. For example, shine phone has big influenced to many consumers and chocolate phone too. They are high price and very scarcity. It is LG's strategy and it is successed. So LG invest to cell phone design's post again about 100 billion won. Maybe, successful design can make bigger profit than any other telecom companies and maintain LG telecom. I strongly agree LG's strategy that invest large money to design's post.