LG eyes higher market share even if revenue falls

By Franklin Paul

LAS VEGAS (Reuters) - South Korea's LG Electronics plans to soldier on as a premier brand in North America, targeting high-income shoppers despite the challenging economy, a senior executive said in an interview on Wednesday.

Michael Ahn, president and chief executive of LG Electronics North America, told Reuters he expects the company to gain overall market share in 2009, even if revenue growth proves difficult as the weak economy causes consumers to delay buying until prices fall.

Experts say sales of flat-panel television sets will hold up this year, but consumers are more likely to buy smaller screens that bring in less revenue for manufacturers.

"Even though the market has a 'downgrade' trend for the high-income segment, there is still a premium market and they need to differentiate innovative products, technology wise," Ahn said in an interview at the Consumer Electronics Show in Las Vegas.

"We are going to continue to develop such a product so that we can keep LG as a premium brand and we can enjoy that market," he added.

LG has, in recent years, undergone a campaign to U.S. increase market share pitting its mobile phones, flat-screen TVs and appliances against Sony, Nokia, and Whirlpool.

Ahn said LG exceeded its goals for 2008, achieving revenue of $13.2 billion, a 16 percent increase from 2007. Five years ago, LG's North American revenue was $5.6 billion.

But with the economic slump, Ahn concedes that revenue could fall.