LG Electronics is accelerating its B2B (business-to-business) operations by expanding commercial laundry appliance supply to Asia, following its expansion into North America and Europe. The company is already generating stable revenue by increasing B2B sales in home appliances, automotive electronics, and HVAC sectors.
On the 3rd, LG Electronics announced that it has completed supplying commercial washing machines and dryers to 630 stores operated by Trendy Wash, Thailand's second-largest laundromat franchise company. The company also plans to supply these products to over 400 new stores opening this year.
LG Electronics is strengthening cooperation with major commercial laundry appliance distribution channels such as 'ELS', 'Big Wash', and 'Express Clean' not only in Thailand but also in the Philippines. It is accelerating its penetration into the Southeast Asian market by expanding supply chains in Vietnam, Cambodia, Singapore, Malaysia, Indonesia, and other countries.
Southeast Asia is a market where demand for commercial laundry appliances continues to grow steadily due to its hot and humid climate and rapid urbanization. Laundromats are also increasing rapidly, centered on major cities with many single-person households, rental housing residents, tourists, and long-term visitors.
As the number of key customers and distribution channels grows, LG Electronics' Southeast Asian business is expanding quickly. Last year, commercial laundry appliance sales in Southeast Asia increased by approximately 60% compared to the previous year. By country, sales in Thailand and the Philippines more than doubled and increased by over 1.5 times, respectively.
LG Electronics is also expanding its commercial laundry appliance business in major global markets such as Europe and North America. This month, it launched 'LG Professional', a LINE-up of commercial laundry appliances with capacities of 20kg or more, in the European market. In North America, it supplies products to the top two companies in the local laundry solutions market.
B2B businesses, including commercial laundry appliances, are becoming a stable revenue base for LG Electronics. The home appliance business is expanding its portfolio through B2B, online direct sales (D2C), and appliance subscription services. It continues to expand businesses targeting corporate customers such as hotel TVs, enterprise signage, and built-in appliances.
The expansion of B2B businesses is cited as a factor that maintains stable profitability even amid sluggish home appliance consumption and rising costs. LG Electronics' B2B sales in the second quarter of this year reached 6.5 trillion won, an increase of 300 billion won compared to the same period last year. More than one-third (36%) of total company sales come from B2B.
Most importantly, stable growth in the automotive electronics business (VS Division) based on order backlogs, along with chiller businesses including AI data center cooling solutions, is driving the growth of LG Electronics' B2B operations. The ES Division, responsible for VS and HVAC businesses, also serves as a stable revenue source with operating profit margins of 6.3% and 8.6%, respectively. For the AI data center cooling solutions business unit, order values exceeded 600 billion won in the first half of this year, with a goal of securing orders in the trillions of won by year-end.
Lim Gi-yong, LG Electronics HS B2B Overseas Sales Director, said, "We will lead the global commercial laundry market with industry-leading technology and proven management solutions."
in INDUSTRY
