Korean giant LG Electronics, a Middle East air conditioners supplier, is stepping up its advance into the region’s construction sector with an enhanced marketing program targeting specifiers, architects, engineers and contractors.
LG, which entered the construction sector last year with a range of central air conditioners, says its sales to this regional segment have increased two-fold over the past 12 months.
“Overall our a/c sales in the UAE amounted to $16 million last year, compared to $10 million in 1999,” explained Gulf region Managing Director P.C. Choi. “Our entry into the contracting sector greatly influenced this 60 percent improved sales performance.”
“This year we are targeting a 30 percent growth in a/c sales to the Emirates and are well on course to achieve this. We believe the market in this region will hold up well because many of the construction infrastructure projects, particularly for the residential and hospitality sectors, are part of long-term development strategies and will go-ahead,” Choi added
Last year, LG air-conditioning sales to the Gulf Cooperation Council (GCC) states totaled $125 million, with a 30 percent increase slated for this year. “Saudi Arabia remains our biggest Gulf market accounting last year for $80 million worth of sales with the Emirates in second place,” said Choi.
“We have now appointed dedicated distributors throughout the Emirates — one for Dubai and the Northern Emirates, another for Abu Dhabi and Al Ain — each selected for its close involvement with the contracting sector in their individual areas.”
In Dubai and the Northern Emirates, LG Electronics Gulf FZE will distribute mainly central air conditioners for project sales through Fortune International Trading Co. LLC and in Abu Dhabi and Al-Ain through United Company for Trading and Environmental Technologies.
Globally LG is targeting around $1.8 billion worth of air conditioner sales this year, which translates into six million units and a worldwide market share of 16 percent. Last year, LG’s share of the global air conditioning market was 12.5 percent. — (Mena Report)
© 2001 Mena Report (www.menareport.com)
