Gerald Chun is a seasoned executive with over 25 years of experience expanding LG’s footprint across the Asia-Pacific region. Since joining LG in 1993, he has held various leadership positions. Currently, he serves as the Managing Director of LGESL (Singapore), a subsidiary of LG Electronics operating in Bangladesh, Nepal, Singapore, and Sri Lanka. LGESL oversees both B2C categories, including televisions, refrigerators, and air solutions, and B2B products, such as informative displays and commercial air conditioning systems.
Prior to his current role, Chun led the Asia Region TV Sales and Marketing team from 2016 to 2019. From 2012 to 2015, he managed global TV demand and supply chain for subsidiary support as the Global TV SCM Team Leader. Between 2007 and 2011, he established LG’s New Zealand branch and developed strategies for Consumer Electronics, IT, and mobile divisions as the New Zealand branch manager and General Manager of Marketing.
HRM Nepal recently caught up with Chun during his visit to Nepal to discuss LGESL’s upcoming priorities. Excerpts:
Q. How would you assess the Nepali market?
A. We view the Nepali market as a promising one. As a subsidiary of LG Electronics, LG Singapore oversees operations in several countries, including Nepal. Our focus lies in manufacturing, sales, and marketing of our products. We collaborate closely with CG Group in Nepal to strengthen our brand presence and enhance sales performance. Regular interactions and meetings between the two companies foster this partnership. We express our gratitude to CG Group for their valuable contribution to LG’s strong position in the Nepali market.
Recently, LG Headquarters unveiled a new vision and brand identity for the next decade, positioning us as a smart life solutions company. In line with this vision, we are optimising our product lineup and implementing targeted marketing strategies in various countries, including Nepal. We are optimistic about our ability to improve performance in both B2C and B2B segments through this collaborative effort.
Q. LG’s products have been the result of smart choices. In recent years, LG has incorporated the latest technology, including AI (Artificial Intelligence), into its products. Can we expect to see more smart products in the coming days?
A. Many brands, including our competitors, are developing AI-embedded or AI-enabled products. As a smart life solutions company, LG is not only focused on technological advancements but also on human emotions, such as affection and empathy, through AI. We have always prioritised understanding and addressing consumer needs and desires, and we continue to do so in the era of AI.
When AI is integrated into our products and solutions, it can enhance the user experience significantly. For instance, AI can elevate picture quality and playback features in personal devices. In upcoming products, consumers may encounter voice-controlled televisions. Similarly, AI-powered features are being incorporated into home appliances, air conditioners, and air purifiers. Air purifiers, equipped with various filters for dust, allergens, and other pollutants, can be monitored through applications. These applications can analyse air quality data and provide personalised recommendations. For example, if an air purifier is primarily used for dust care but the application detects elevated allergen levels, it may suggest focusing on allergy care.
By developing innovative products and solutions, LG aims to contribute to the well-being and happiness of consumers.
Q. Considering your extensive experience in sales and marketing, could you share some strategies that sales executives should focus on to enhance their performance?
A. I’ve been with LG for three decades, and I’m deeply committed to the brand. While we receive strategic direction from LG Headquarters, we adapt our approach to suit local market conditions. For instance, while Headquarters may prioritise vertical and side-by-side refrigerators, the Nepali market leans towards single-door models due to dietary preferences and economic factors. In contrast, the Bangladeshi market favours models with a larger freezer compartment.
We carefully select products from our global lineup to align with the specific needs and preferences of each market. Our marketing teams share local insights with Headquarters to inform global strategies. We implement targeted marketing campaigns, including seasonal promotions and gift vouchers, to boost sales. By leveraging the 4P marketing mix and incorporating consumer feedback, we strive to deliver products and services that exceed customer expectations.
Q. Are sales more complex or simplified today compared to when you first started your career?
A. While many of our team members, particularly those in sales and marketing, can provide valuable insights into sales performance, my diverse experience in strategy, human resources, and international operations allows me to analyse the broader factors influencing sales success. By drawing on this knowledge, I can identify potential solutions and competitive strategies.
Q. In Nepal, LGESL’s partnership with CG Group has significantly strengthened the position of the LG brand in the Nepali market. Considering that many Korean companies, such as Hyundai, have set up assembly lines in Nepal, does your company have any plans to open an assembly line in Nepal in collaboration with CG Group?
A. CG Group enjoys a strong number-one brand position across various business categories, not just electronics. Given this strong brand equity, expanding partnerships with other brands is not a priority. Instead, we are focused on strengthening our existing relationship with CG Group to drive growth.
Beyond our core products – televisions, refrigerators, washing machines, and others – we are exploring opportunities in new product categories, such as PCs (laptops) and innovative TV models. We believe that these new ventures can serve as growth engines for our business.
We are also considering potential collaborations with CG Group in other premium business areas, like the automotive sector. Localised marketing campaigns that cross-promote electronics and CG Group’s automobiles or motorcycles in Nepal could further enhance sales performance for both product lines.
Q. As LG is focusing on more sophisticated technologies in its products, are these viable/feasible for Nepali market considering the size of economy and choices of consumers here?
A. Before the COVID-19 pandemic, the Nepali market was developing in line with other emerging markets. However, the pandemic had a significant adverse impact on the global economy, including Nepal. Over the past few years, market confidence has gradually recovered. This year, we’ve seen a slight improvement in business conditions, and we anticipate a full recovery of the Nepali market soon, enabling us to pursue premium business opportunities.
While LG offers a range of premium, mid-range, and low-end products, the current market demand is skewed towards low-end and mid-range segments. For instance, in the TV category, 32 to 43-inch models, which are considered entry-level, still dominate sales.
To enhance our competitiveness, we are focusing on integrating mid-range and low-end segments, as well as premium and mid-range segments. This strategy allows us to offer high-quality products at competitive prices. We are also leveraging digital marketing to reach our target audience.
During my 15 years of experience in the Singapore market, I successfully increased demand by 40 times. LG now holds a 35% market share in electronics and home appliances in Singapore. We aim to replicate this success in the Nepali market over the next 10 to 20 years.
Q. In conclusion, do you believe that technological disruptions and increasing competition will influence competitive pricing in the near future?
A. Certainly, consumers will be able to purchase electronic goods and home appliances at competitive prices. While offering the best prices is important, it’s equally crucial to maintain profitability for the sustainability of brands like LG. By striking a balance between affordability and profitability, we can continue to serve our valued customers.
