While the North American stick vacuum cleaner market continues to grow, domestic home appliance companies are finding it difficult to expand their foothold. This is due to a robust competitive landscape dominated by local firms. Consequently, speculation has emerged that LG Electronics may withdraw from its North American stick vacuum cleaner business by next year.
According to the home appliance industry on the 20th, LG Electronics currently sells an entry-level stick vacuum model called "CodeZero Q3" in North America for approximately $300. It is reported that LG Electronics is considering not producing additional units even if all current inventory of this product is sold out by next year.
An industry insider stated, "LG Electronics has previously marketed a variety of stick vacuum models in North America, including premium products. If the company had the will to continue its business, it would not leave only one low-cost model in the North American market. This indicates that LG is seriously considering whether to continue the business at all."
The stick vacuum cleaner market itself continues to expand. According to Fortune Business Insights, a market research firm, the North American stick vacuum cleaner market reached $1.34 billion (approximately 1.86 trillion won) last year, accounting for 31.6% of the global market. This year, it is expected to grow to $1.41 billion (approximately 2 trillion won). Growth of approximately 6.05% annually is anticipated in the future as well.
In this growing market, Samsung Electronics and LG Electronics are struggling to expand their presence. According to Euromonitor, a global market research firm, Bissell held a 22% share of total vacuum cleaner sales in the United States last year, while SharkNinja accounted for 12%. In Canada, they recorded market shares of 31% and 18%, respectively. Neither Samsung Electronics nor LG Electronics was included among the top major companies in either country. Although these figures do not cover stick vacuums exclusively, they provide a clear indication of both companies' positions in the North American vacuum cleaner market.
The background to domestic companies' struggles lies in the product lines and distribution networks established by specialized firms. Local companies such as Bissell and SharkNinja sell products across various price ranges. In particular, SharkNinja operates an omnichannel strategy linking online and offline channels, selling its products through major retailers including Amazon, Costco, Walmart, Target, and Best Buy. In the mid-to-low price segment, competition is intensifying with Chinese companies like Roborock and Dreame entering the market.
Industry observers point to LG Electronics' strategy of improving profitability and investment efficiency as the reason for its review of restructuring its North American stick vacuum cleaner business. At the regular shareholders' meeting in March, LG Electronics CEO Ryu Jae-cheol stated, "We will demonstrate growth through a portfolio shift focused on high-performance products." This year's business direction also emphasized selective focus on high-profit areas such as B2B (business-to-business), platforms, and D2X (direct-to-customer experience). The strategy involves expanding investments in high-growth businesses while adjusting resource allocation priorities by evaluating business performance and profitability. LG Electronics is expected to decide its future business direction for the North American stick vacuum cleaner business based on this same approach, weighing profitability against additional investment.
In response, an LG Electronics representative stated, "We are continuously adjusting sales models by distribution channel, considering market conditions and channel-specific business viability," adding, "We have not considered terminating our North American business."
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