While the North American stick vacuum market continues to grow, Korean home appliance companies struggle to expand their foothold due to the entrenched dominance of local competitors. Consequently, speculation has emerged that LG Electronics may withdraw its stick vacuum business from North America by next year.
According to industry sources on the 20th, LG Electronics currently sells an entry-level stick vacuum model called "CodeZero Q3" in North America at approximately $300. Reports indicate that even if all current inventory of this product is sold out by next year, LG Electronics is considering halting further production.
An industry insider stated, "LG Electronics has marketed a wide range of stick vacuum models in North America, including premium products. If it intended to continue the business, it would not retain only one low-priced model in the market." The remark implies that the company is seriously contemplating whether to sustain operations.
The stick vacuum market itself continues to expand. According to Fortune Business Insights, a market research firm, the North American stick vacuum market size reached $1.34 billion (approximately 1.86 trillion won) last year, accounting for 31.6% of the global market. This year, it is projected to grow to $1.41 billion (approximately 2 trillion won). Annual growth of about 6.05% is expected in the coming years.
In this growing market, Samsung Electronics and LG Electronics face difficulties expanding their presence. According to Euromonitor, a global market research firm, Bissell held 22% of total vacuum cleaner sales in the U.S. last year, while SharkNinja captured 12%. In Canada, they recorded market shares of 31% and 18%, respectively.
Neither Samsung Electronics nor LG Electronics ranked among the top players in either country. Although these figures do not cover stick vacuums exclusively, they provide insight into both companies' positions in the North American vacuum cleaner market.
The challenges faced by Korean companies stem from the product portfolios and distribution networks established by specialized local firms. Domestic companies like Bissell and SharkNinja offer products across various price ranges.
Notably, SharkNinja operates an omnichannel strategy integrating 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 has intensified with the entry of Chinese companies such as Roborock and Dreame.
Industry observers attribute LG Electronics' consideration of restructuring its North American stick vacuum business to a strategy aimed at improving profitability and investment efficiency. At the annual general meeting held 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 strategic direction emphasizes selective concentration on high-margin areas such as B2B (business-to-business), platforms, and D2X (direct customer experience). Rather than expanding investments in high-growth businesses, the company is adjusting resource allocation priorities by evaluating business performance and profitability. LG Electronics is expected to decide its future course for the North American stick vacuum business based on this approach, weighing potential returns from additional investments.
In response, an LG Electronics representative stated, "We are continuously adjusting sales models across distribution channels while considering market conditions and channel-specific profitability," but added, "We have not considered terminating our North American operations."
in INDUSTRY
