LG Electronics Partners with China to Make Refrigerators and Washing Machines

[Financial News] LG Electronics will launch ultra-low-cost refrigerators and washing machines developed in collaboration with a Chinese appliance company in Europe. This is an attempt to expand the mid-to-low-end product market (volume zone) in the global market.
According to the industry on the 14th, LG Electronics will sell drum washing machines and refrigerators manufactured in a joint development method (JDM) with a Chinese appliance company in Europe as early as the end of this month.
LG Electronics developed drum washing machines with the Chinese mid-sized appliance company Skyworth and refrigerators with Okuma. JDM is a method of collaboration from planning to development with a company, unlike the original equipment manufacturing (OEM) method, where the contractor produces the product planned and developed by the original contractor.
This is not the first time LG Electronics has made products with a Chinese company using the JDM method. Last year, LG Electronics launched an all-in-one robot vacuum cleaner in Korea with China's Silver Star.
It is analyzed as a measure to respond to the situation where Chinese companies are rapidly increasing their market share based on cheap products in overseas markets such as Europe.
Product production is handled by the Chinese company, but the brand is launched under the LG name, and after-sales service (AS) is also provided by LG Electronics. The price of refrigerators and washing machines is known to be around 500 dollars (about 690,000 won).
LG Electronics is also considering expanding the range of products sold depending on the market situation in the future.

kjh0109@fnnews.com Kwon Jun-ho Reporter