Samsung Electronics and LG Electronics, Korea’s two largest home appliance companies, are competing fiercely with various discount events as the year-end shopping season approaches.
Attention is being paid to how much inventory will be cleared and performance will be improved through discount campaigns centered on online brand shops operated by each company.
According to the industry on the 20th, in addition to participating in the recent Korea Sale Festa, LG Electronics will hold the ‘LG Win-Win Festival’ on the 21st to commemorate the Korean Series victory of the LG Twins, owned by LG Chairman Koo Kwang-mo.
The discount rate was set at 29%, taking inspiration from the fact that the team won the Korean Series for the first time in 29 years. LG Electronics explained that the 29% discount rate for a single item is an unprecedented level even when compared to the employee discount rate.
Specific discount items were not announced separately as they required internal coordination. An announcement will be made on the LG Electronics online brand shop on the 21st, the day of the event.
The industry believes that there is a high possibility of discounts on popular home appliances such as washing machines, refrigerators, and TVs.
LG Electronics said, “As this is a fairly extraordinary discount, we expect that not only LG Twins fans but also many consumers will start shopping online,” adding, “We are making thorough preparations, including server inspections, in preparation for this.”
Samsung Electronics is fighting back by holding a ‘Samsung Week Black Friday’ discount event until the end of this month. In addition, Samsung Electronics Sale Festa, the so-called ‘Samse Fe’, which is held every year at the beginning of the year, is also planned to be held, raising expectations for discounts.
According to Samsung Electronics, if you purchase two or more items such as a refrigerator or washing machine at the same time at Samsung.com, an online brand shop, you can get them up to 47% cheaper than the standard price. For single products, a 20-40% discount rate is applied.
When paying with a Samsung Card, different discounts are applied depending on the amount: 900,000 won for payments of 20 million won or more, 700,000 won for payments of 15 million won or more, and 500,000 won for payments of 10 million won or more.
In particular, Samsung Electronics prepared a separate ‘TV Super Big Festa’. In addition to additional discounts on TVs, you can enjoy Samsung Care Plus benefits along with a 6-month TVing Premium subscription.
In addition, a simultaneous discount event will be held for home appliances and mobile products in online and offline stores through Samsepe early next year.
An official from the home appliance industry said, “Recently, both Samsung and LG are struggling to increase TV sales, which have been sluggish across the home appliance industry,” and added, “We will be able to ease the burden if we organize inventory through large-scale discounts at the end of the year.”
Meanwhile, Samsung Electronics and LG Electronics’ performance in the third quarter of this year showed that the combined sales of LG Electronics’ TV (HE) and Home Appliances (H&A) business divisions were KRW 11.026 trillion and operating profit was KRW 615.2 billion.
Samsung Electronics’ video display (VD) and home appliance division recorded sales of 13.71 trillion won and operating profit of 380 billion won. The operating profit of LG Electronics’ TV and home appliance division is more than 1.5 times greater than that of Samsung Electronics.