KUALA LUMPUR: South Korean multinational electronics company LG Electronics (M) Sdn Bhd (LG Malaysia) plans to open more stores in Malaysia to expand its presence and access to consumer products nationwide.
Managing director Justin Choi said LG Malaysia's expansion strategy involves identifying high-potential locations, including urban centres and areas with high consumer demand.
"We hope to open more shops, with our key focus areas being Klang Valley, Johor, and Penang.
"As mentioned, we are actively seeking partnerships with prominent retail chains and exploring opportunities to establish flagship stores and experience zones within their premises.
"These strategic collaborations enable us to leverage the existing infrastructure and footfall of established retailers, ensuring a seamless and engaging shopping experience for consumers," he told The New Straits Times.
Choi said LG Malaysia is optimistic about the future domestic market projections and robust growth plans, and the company anticipates continued growth in the demand for the brand's products and solutions in Malaysia.
"Just to elaborate, in Malaysia, our TVs and home appliances such as refrigerators and washing machines made up 80 per cent of total sales last year, while air and water purifiers saw double-digit sales growth as of August 2022," he said.
Without providing any timeline for the company's future expansion plan, Choi said LG Malaysia is committed to accelerating its store expansion efforts in Malaysia across the country, with the recent shop-in-shop (SIS) opening in Penang.
"We understand the importance of timely execution and meeting consumer demands.
"We are working diligently to identify suitable locations, finalise partnerships, and commence store openings as soon as possible," he said.
While LG Malaysia enjoyed considerable success in the domestic market, Choi also noted that the company acknowledges the challenges of operating in a dynamic business environment.
"One of the main challenges we face is intense competition from domestic and international brands.
"To address this, we continuously invest in research and development to stay ahead of emerging trends and offer differentiated products.
"Another challenge is ensuring effective distribution and availability of our products nationwide.
"To overcome this, we have been strengthening our partnerships with retailers and distributors to expand our reach and improve accessibility for consumers, particularly in remote areas," said Choi.
On a global scale, Choi said the parent company, LG Corp, will allocate significant capital expenditure towards opening more stores and refurbishing and modernising existing ones this year.
The specific capex allocation varies based on the scope and scale of each store project.
While declining to reveal the exact capex amount, Choi said that when selecting new store locations, the company considers population density and consumer demographics, proximity to key transportation hubs, and complementary retail offerings.
"We aim to strategically position our stores in high-traffic areas and major shopping destinations to maximise visibility and accessibility for consumers.
"Furthermore, our store designs prioritise creating engaging and interactive spaces that showcase our products and technologies.
"Overall, through our capex investments and careful selection of store locations, we aim to strengthen our market presence, improve customer engagement, and contribute to the growth of the Malaysian retail landscape," Choi said.
