Busan: Appliance manufacturers are keeping prices low, bracing for soaring costs stemming from the Middle East crisis. LG, a major South Korean electronics manufacturer, stated that the Middle East crisis has driven up costs, but it is maintaining prices to retain its customer base, especially in the Asia-Pacific region. Meanwhile, LG Thailand is adjusting its strategy by expanding online channels and offering 'LG Subscription,' a service that includes product purchases and maintenance, to keep sales amidst slowing consumer spending.
According to Thai News Agency, Jae Seung Kim, CEO of LG Electronics Asia Pacific, stated that the conflict in the Middle East has resulted in increased production costs across several areas, including energy, raw materials, and logistics. However, LG will not raise product prices in order to maintain its customer base and long-term competitiveness.
LG held the LG InnoFest 2026 APAC event in Busan, South Korea, to showcase its innovative home appliance technologies, meet with business partners from across the Asia Pacific region, and announce its future business direction. The event focused on developing AI-driven solutions to meet the lifestyle needs of consumers in each country.
Mr. Jae-seung Kim further stated that although the impact of the situation has affected the global economy and may slow down consumer purchasing power in many countries, home appliances remain essential in daily life. LG continues to innovate despite facing increased costs, believing that consumers will continue to trust Korean technology (K-Technology), a key strength of the company.
Mr. Amnat Singhachon, Head of Marketing at LG Electronics (Thailand) Co., Ltd., stated that in Thailand, the company has adopted the "LG Subscription" business model to expand its customer base and address changing purchasing power. This subscription-based service for home appliances reduces the upfront cost, making it easier for consumers to access new technology products, along with maintenance and replacement services according to the terms and conditions.
Simultaneously, the company is accelerating the expansion of its sales channels through the online platform LG.com alongside physical stores to increase consumer reach and accommodate the growing trend of consumers purchasing goods through digital channels.
Mr. Amnat added that although the company is currently maintaining its prices, it estimates that the electrical appliance market may not see as aggressive promotions as in the past in the near future. However, the company will not lower its sales target.
In addition, the company plans to launch new products in 2026 featuring innovative AI capabilities that improve energy efficiency and provide connected control for user convenience, while continuing to drive sales towards meeting its set targets.