More Changes At LG After Local CMO Walks
This week LG Electronics lost their marketing director Angus Jones now a massive musical chairs move has been announced by LG Electronics with the global appointment of a new CEO, CFO and CSO, as well as new Presidents for the Home Entertainment and Mobile Communications units.
LG normally switches management around at this time of the year, but this is big said one observer.
Recently senior global management at LG Electronics admitted to me that the biggest problem at the Korean Company is “not our products but marketing”.
Executives are now looking at what they can do to address a lack of Western market marketing with some claiming that what LG need to do is appoint UK or US marketers.
“Currently LG operations in Europe are conducted out of Europe and this is not working: said one source.
“We need to adopt a whole new marketing approach” the source said.
The new changes are big with insiders tipping a fresh new approach.
Starting at the top, Brian Kwon has been promoted from his position as President of the Home Entertainment business to Group CEO. Having worked for the business for more than 30 years, Kwon has most recently been managing the successful Home Entertainment unit. In the most recent quarterly reports, this group grew 3.5% year-on-year, the latest in a string of positive results.
Elsewhere at the top-table, Bae Doo-yong assumes the role of CFO having spent seven years slaving away in the tax team, while the newly-created position of Chief Strategy Officer will be taken by William Cho. Cho, who was head of the North American business, will be tasked with overseeing the on-going digital transformation initiatives at LG.
With Kwon taking the CEO role, Park Hyoung-sei will assume responsibility for the Home Entertainment division, while in Mobile Communications, Morris Lee will take the top job. Lee perhaps has the most difficult task of the newly-appointed executives, as LG’s mobile division continues to toil.
While LG was once a prominent brand in the mobile world, this is no-longer the case.
The division is haemorrhaging cash, the third-quarter financials saw a 24.5% year-on-year decline in revenues, as new players are stealing the thunder. The likes of Huawei, Xiaomi, Oppo and Vivo are perhaps capturing market share in the mid-tier markets LG formerly enjoyed.
Alongside all of these changes¸ the team has also said it will invest more significant in ‘future core and common technologies. In more accessible language, this means more money for R&D in AI, software and robotics.
The company has stated it would like to usher in a new era for the company, bringing a more youthful edge to the management team. All new appointments will assume their roles on January 1, 2020.