LG Electronics has set an ambitious goal: to double its home appliance sales in Europe within the next five years. This aggressive expansion strategy, announced by Lyu Jae-cheol, head of LG’s home appliance and air solution division, at IFA 2025 in Berlin, aims to propel the company to the top spot in the European market. Lyu highlighted LG’s recent success in navigating intense competition and securing strong customer approval, positioning the company for further growth. This strategic push underscores Europe’s significance as a premium market, comparable to North America, in LG’s global ambitions.
The company’s strategy focuses on multiple avenues for growth. Beyond its existing presence in both premium and mass market segments, LG will accelerate expansion into business-to-business (B2B) sales, focusing particularly on built-in appliances tailored to the compact housing structures common in Europe. A tenfold increase in built-in appliance sales by 2030 is targeted, aiming for a top-five ranking in this $24 billion market. Direct-to-consumer (D2C) sales will also be significantly expanded through a threefold increase by 2030 via the company’s online brand shop. This online strategy will leverage AI services, including chatbots and personalized recommendations, to enhance customer engagement and drive sales.
Furthermore, LG is diversifying its offerings beyond hardware. The company plans to expand its non-hardware solutions, providing a more stable and profitable business model. This diversification strategy aims to mitigate price volatility and ensure sustained long-term growth. These non-hardware solutions, coupled with the B2B and D2C expansion, form a key part of LG’s plan to achieve its ambitious sales target.
To further strengthen its position, LG is launching its LG ThinQ AI service across Europe. This service, featuring ThinQ UP (automatic upgrades for existing appliances) and ThinQ Care (proactive maintenance via self-diagnostics), represents a significant step in enhancing customer experience and loyalty. By combining innovative product offerings, expanded sales channels, and cutting-edge AI services, LG is confident in its ability to achieve its ambitious goals in the competitive European home appliance market.
