The B2B division of LG Spain consolidates its integrated technological strategy and doubles its profitability in 2014

The Spanish subsidiary of LG has more than managed to implement its strategy and business proposal led by the B2B division, based on the integration of technological and value areas, for the professional market, which in its first year has increased its quota and doubled its profitability.

 

The integration strategy of technological areas, innovation and energy efficiency, pillars of the business model of the B2B division of LG Spain to become “the best technological partner for companies” yields positive results in its first financial year (in the absence of closing fiscal year), “growing in market share, income and profitability in the three areas: telephony and mobile devices; digital signage and energy efficiency (lighting and air conditioning)”, Francisco Ramírez has stressed, director of the professional division of LG Spain, in a meeting with the media.

The path to achieving this position in the market has not been easy., as Ramírez remembers, “taking into account that LG Electronics has always been linked to the world of consumption, the launch of a professional division was something atypical. In these ten years we have gained experience and developed an integrated structure of innovative technological areas, of synergies, to provide added value to companies. We have also developed a management method to reduce costs and achieve economies of scale that have made us more competitive in the market and with constant investment, despite the crisis, an R&D, thanks to the fact that we are a multi-product and technologically diversified company that places us among the three leaders in the market”.

Retail and hospitality as references

Specifically, The retail and hospitality sectors are the ones that have contributed the most to these good business results., in such a way that the 35% of the B2B division's projects are currently focused on the first environment and the 30% in the second.

Iniciativas como el Plan Renove Hotel TV para incentivar al sector hostelero en la renovación de televisores obsoletos por Smart TV, con una propuesta de valor ventajosa para que estos establecimientos mejoren la estancia de sus clientes y puedan ofrecerles nuevos servicios desde una aplicación interactiva (como informó Digital AV Magazine) han superado las expectativas de la compañía.

So, de las “300.000 unidades previstas para renovar el parque de televisores de los hoteles, donde contamos con unos 12.300 customers, hemos vendido 10.000 further; un segmento de mercado en el que somos un referente, y en el que hemos añadido nuestras soluciones integradas de iluminación, climatización y cartelería digital”, asegura Ramírez.

Cartelería digital e internacionalización

The head of the B2B division has highlighted in this sense that the digital signage area has grown more than 40%. An important aspect of this increase is due to, as has happened with the rest of the professional business areas, “to the internationalization of Spanish companies, to whom we have accompanied as a technological and valuable partner in their projects in this period of crisis - he explains -. To this end, we have created the figure of international partner in our integration channel., with unified service management”.

Ramirez has highlighted that economic forecasts are improving, since the business volume of professional technological solutions in Spain at the close of 2014 is estimated at about 1.300-1.400 million euros, regarding the 750 million from last year “and it is a positive message for everyone and tells us that we are on the right path”.

Regarding industrial air conditioning areas, with a growth of 27%, and lighting (50%), have contributed to the good progress of this business model in which LG Spain has been a pioneer in Europe and which is currently being implemented in the subsidiaries of the United Kingdom and Greece..