최초입력 2025.07.15 10:59:56
LG Electronics Inc. is making a push into the mid- to low-priced home appliance market by launching competitively priced drum washing machines in partnership with China’s Skyworth Group Co.
LG announced on Monday that it has jointly developed a 9-kilogram drum washing machine with Skyworth, with sales in Europe set to begin as early as next month.
It has also partnered with Okuma to develop a 400-liter two-door refrigerator.
The initiative adopts a joint development and manufacturing (JDM) model, which involves collaboration from planning through production. Prices are expected to be around $500.
LG is responsible for design and quality control, while production will be handled by local Chinese firms. The products will carry the LG brand, with after-sales service also provided by LG.
Unlike the original equipment manufacturing (OEM) model, which outsources only production, this project involves cooperation from the initial planning stage, aiming to reduce costs while maintaining brand trust.
This move marks a shift for LG’s home appliance business, which has traditionally focused on premium products. With demand for high-end appliances stagnating and growth in the mid- to low-priced segment accelerating, Chinese manufacturers have quickly gained market share, prompting LG to adjust its strategy.
LG’s home appliance and TV divisions posted operating profit of 2.36 trillion won ($1.7 billion) last year, down 28.5 percent from 3.3 trillion won in 2021.
In contrast, China’s Midea Group Co. saw its operating profit surge by 39 percent over the same period, driven by a value-for-money strategy.
LG reportedly concluded it could no longer overlook this segment and, in 2023, created a dedicated team within its home appliance division to pursue global partnerships. It selected Skyworth and Okuma, mid-sized Chinese appliance makers, citing their production capabilities and quality standards as key factors.
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