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LG Combines Good Looks, Clever Design

By Alan Wolf -- TWICE, 7/26/2004

Sidebars:
Success Story: LG Electronics WM1832C
Dealers Had Immediate Hit On Their Hands

Englewood Cliffs, N.J.— They said it couldn't be done.

But in the three short years since LG Electronics debuted its tech-heavy white goods line at the Kitchen/Bath Industry Show, the Korean powerhouse has made a place for itself within the crowded U.S. market with major placements at Best Buy, Fry's, H.H. Gregg, P.C. Richard & Son and other top chains.

That success speaks for itself within NPD's Houseworld rankings, where LG's entry-level WM1832C front-loading washer placed fourth in category dollar volume for the 12-month period of June 2003 through May 2004, its first full year on the market. (The company's step-up WM2032H placed 10th.)

No mean feat, considering the competition: Maytag, which helped usher in the front-load configuration with its breakthrough Neptune platform, and Whirlpool, which defined the category with its best-selling Duet laundry pair.

So how did LG's entry, trade name Tromm, climb so far so fast? According to former Amana exec John Herrington, now VP/sales at LG's Digital Appliance division, the 1832's sales success speaks to "the integration of simple, well-designed electronics with great looks and all of the features associated with front-loaders." Those include an industry-leading 3.72-cubic-foot capacity; a large, ergonomically-correct opening; and a compelling efficiency story in its miserly use of water and electricity.

"The product had the features that consumers are looking for," Herrington said, including such bells and whistles as illuminated controls and an oversized dial-a-cycle jogg wheel. "The consumer is also sensitive to style, even in the laundry room, and we have hit that well," he noted.

Herrington is also quick to credit his "great customers, who really embraced the brand," and a "solid retail training team" that reflects LG's investment in, and support of, the line.

Going forward, LG is hoping to build on its success with the introduction of a stackable, next-generation Tromm featuring up-front, rather than rear-panel, controls.

Top 10 Front-Loading Washing Machines
Dollar sales at retail, June 2003 – May 2004
1. Whirlpool GHW9100L
2. Whirlpool GHW9250M
3. Maytag MAH5500B
4. LG Electronics WM1832C
5. Maytag MAH6500A
6. Frigidaire GLTF1670A
7. Whirlpool LSQ9564M
8. Whirlpool GHW9200L
9. Frigidaire GLTF1040A
10. LG Electronics WM2032H
Source: The NPD Group
© TWICE 2004

 

Success Story: LG Electronics WM1832C

Suggested Retail: $899

Key features:

  • Direct-drive motor for reduced noise and vibration
  • Extra-large load capacity (3.72 cubic feet)
  • Increased water and energy savings
  • Automatic temperature control
  • Automatically sets water level and wash time
  • Five washing programs, four temperature settings
  • Delay Wash feature (allows wash to begin up to nine hours after loading)
  • Child lock and safety latch

Dealers Had Immediate Hit On Their Hands

New York— White goods retailers were clearly throwing the dice when they brought in an untried front washer from LG, a brand that had little, if any, resonance with U.S. majap shoppers last year. But dealers were wowed by its looks, features and price point, and, as it turned out, consumers would be too.

"We started with the 1832 [$899], the step-up 2032 [$999] and their companion dryers, and they just took off running," recalled Alex Piligian, major appliance buyer at P.C. Richard & Son. "We were concerned that customers would say 'Who's LG?', but we found that consumers buy with their eyes. If the sales person can sell the feature benefit, and the piece looks good, they'll take it."

The experience was similar for Paul Warner, VP/purchasing director at Warners Stellian. "I'm probably as shocked as most, but that model and the whole line has done well and served us well," he said. "We were surprised and pleased that the consumer was willing to spend on that brand, and I understand that other dealers like Fry's, P.C. Richard and Best Buy like it too. Without a doubt, it's holding its own with the likes of Whirlpool and Maytag."

For Piligian, a key selling point was the manufacturer's craftsmanship. "The fit, feel and finish of this product are terrific," he said. "It also has substantial, innovative technology like its direct-drive motor, plus the largest capacity out there."

Piligian also believes that the 1832 represents a "throwback to traditional styling," which provides consumers with an alternative to the more contemporary looks of the Duet (Whirlpool) and Neptune (Maytag) front-loaders. What's more, with the addition of a forthcoming, smaller capacity entry-level model at $799, and the introduction of stackable front-panel models at $999 and $1,099, the LG line offers "more breadth than anyone else, and real nice step points," he said.

Warner agreed that the 1832 is "engineered well, is a win in its aesthetic presentation, is competitive in capacity and conservation, and has the direct drive story." Also important, he said, was the timing of its introduction — which came just as the front-loader market was beginning to ignite — as well as its large window and "desirable price point."

In addition, Warner lauds LG for its retail sales support and for keeping his company well-stocked in washers, two factors that also contributed to the 1832's success.

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