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The electronics giant talks about trends and innovations in home appliances, remodeling and design, and what we could expect in the coming year.
By Dianne M. Pogoda
The past two years have seen unprecedented activity in K&B, with wild fluctuations in home sales, construction and remodeling. It’s mostly been a boon for the industry, but recently, economic factors including fear of recession, rising interest rates and slower home sales have caused executives to rethink strategies so they may meet the challenges likely to emerge in the new year.
Sam Kim, president of Home Appliances for LG Electronics USA, discussed the company’s approach for 2023.
NKBA: What’s your overall 2023 projection?
Sam Kim: With softness in the homebuilder market, continuing inflation and recession concerns, we anticipate the industry will see a slowdown from its previous historical pace. The luxury space, however, seems to be a little more resilient than the core part of the appliance business. We anticipate some mix-down, as customers may choose a lower-priced alternative to finish projects.
NKBA: In which categories are you forecasting growth?
SK: At LG, we’re forecasting strong growth across our family of appliance brands. Our Builder channel is poised for expansion, and we’ve made changes with products, people, and processes to continue to drive this business. We also just relaunched the LG Studio brand, aimed at the mass-premium category, which we expect will keep growing.
NKBA: Is new construction or remodeling strongest?
SK: There’s no question that new construction is slowing, but there’s still a pipeline of homes under construction to be completed — and that’s happening faster. The remodeling category tends to be a better fit for luxury and mass-premium markets. The luxury segment continues to have extended lead times to just produce products that were sold over the last year.
We expect remodeling to be impacted by economic conditions as well, but [not] slowing at the same pace as new construction. Replacement is still the lion’s share of the appliance business — if a washer or dryer breaks, it must be replaced. Inflation is a big factor, and I think it makes most people evaluate where they can save. Instead of replacing both washer and dryer together, they might just replace the unit that’s not working.
NKBA: What are some new tech innovations, and what are you introducing at KBIS?
SK: Integrated technology and connectivity throughout the home continues to be big in smart-home trends. You’ll see more kitchen innovations from LG that allow for more flexibility and convenience for consumers. For [SKS], we’re bringing the first-of-its-kind 48-inch French door refrigerator to market, ramping up shipping in February, allowing designers to offer clients unprecedented capacity and functionality in the French door configuration. We’re also bringing some exciting additions to our culinary lineup, and a new dishwasher with a one-hour complete cycle.
NKBA: What are some smart-tech innovations in the next generation of SKS appliances?
SK: To increase the luxury experience and offer ultimate peace-of-mind, [SKS] is launching ThinQ Care, a unique customer support innovation that uses artificial intelligence to help homeowners proactively monitor and maintain appliances. This comprehensive AI service analyzes usage patterns, reports on product performance and alerts the homeowner if a potential service issue is detected. It also provides guidance on optimal usage and informs homeowners when supplies are low.
[SKS] understands technology, having incorporated smart tech into appliances in pioneering ways — from integrating sous vide into pro ranges to developing smart knobs with individual built-in timers, and even offering a unique app to manage wine collections. Now, we’re bringing that same tech-focused expertise to our customer support ecosystem to enhance the luxury experience. ThinQ Care adds a new level of connected convenience.
Consumers and designers continue to be excited about integrating technology into the kitchen. The latest NKBA 2023 trend report noted that homeowners want smart tech features like steam cooking/air frying integrated into ovens, and the ability to control appliances via a mobile app. That always has been and will continue to be a priority for [SKS], providing at-home chefs with the tools they need to prepare foods in the best possible ways.
NKBA: How is the supply chain, and what do you project for inventories, supplies and lead times for 2023?
SK: LG has generally been in better shape than many other manufacturers regarding supply. Some of this was owing to new manufacturing facilities that significantly increased production capability, as well as being vertically integrated, so we may not be as reliant on [outside] parts as other brands.
NKBA: What one thing do you want industry pros to know about SKS for 2023?
SK: We will continue to lead the luxury space with first-and-only type of products. Our new 48-inch French door refrigerator is designer-friendly in a truly integrated panel-ready platform that allows it to be hidden in a kitchen like an Armoire, or make a bold statement with stainless steel. With LG’s backing, Signature Kitchen Suite has tremendous resources to design and market top-quality, innovative products. LG has long been recognized for high quality, reliability and customer satisfaction across the industry, and that translates to the Signature Kitchen brand as well.
