A whopping total of 21 LG products, including mobile phones, were given accolades at the Hannover-based International Forum Design (iF Design) Awards 2007. How did it do that?

SOURCE: LG Electronics Inc.
LG is a relative late-comer in the mobile phone industry. It entered the CDMA handset sector in 1997 and become the world's top CDMA producer ten years later. It came into the GSM market circa 2001, and hopes to replicate the success within the same time-frame, to be among the world's Top 3 by 2010.
How is LG going to do it when the market is currently dominated by Nokia, Motorola and Samsung, in that order, and competition is keener than ever in jostling for market share and sustainable profitability -- and LG just has three years to realise its target?
In the face of keen competition
Screenshots posed that question to Jae Bae (picture below), LG Executive Vice President for Overseas Sales & Marketing Division, at the press conference where LG unveiled its second Black Label series, Shine, in Seoul recently.

Jae-hoon Bae... LensaPress photo by Jeff Ooi
Particularly, I asked him what strategies LG had taken to create a new, uncontested market space in the GSM sector, and to make its competitors irrelevant.
Bae obliged my question and explained at length on how LG had embraced the integrated management philosophy outlined by W. Chan Kim and Renée Mauborgne, the Blue Ocean Strategy, which I highlighted in this blog last May.
"LG Chocolate is a Blue Ocean product," Bae said. "It was our first flagship series to penetrate the GSM market with a strong point of differentiation that separates us from the competitors."
We were made to understand that LG is currently focussing on product innovation skewed on designs that appeal to the trendy lifestyles and tastes, supported by integrated processes in product development, market and distribution, user experience and customer care.
Globally, LG attempts to deliver its marketing communications message across by embracing both traditional and new media channels, besides close pacing with the strategic distribution points, added Chang Ma, LG vice president of Marketing Strategy Team.
We had the opportunity to spend considerable time in visiting LG's Mobile Communications Design R&D Lab, and to understand how much LG has done to pursue its global dominance in industrial design.

Artsy moods oozing at the entrance to the LG Design R&D Lab... LensaPress photo by Jeff Ooi-
The Mobile Communications (MC) Design R&D Lab is located within the LG Electronics Design Management Center, situated in Yeoksam-dong the up-market, off Teheran-ro part of Seoul. It hosts four design labs for Digital Display and Media (DDM) products, Digital Appliance (DA) products, the LSR (Customer Research, Future Trends & Creative Concept), and Corporate Designs (for User Interface, Graphical User Interface, Graphic, Packaging. Colour & Design Materials).
It was disclosed to the visiting media members that the MC Design Lab was allocated an annual budget of 10 billion won (approximately US$100 million) for its R&D programmes to propel the mobile communications part of LG business.
The LG Design Management Center is currently head by Kang-Heui Cha (picture below) as its Executive Director. Cha is currently LG's marksman in industrial design.
Cha has more than 20 years of experience in industrial design, and he has been the key person who developed LG’s Chocolate Phone, which has sold some 7 millions units worldwide since its launch last year, and that was one of the reasons he was recognised as LG's "Super Designer" in late 2006, and appointed as the ED of LG Electronics Design Management Center in early 2007.
I was made to understand that "Super Designer" is a unique internal LG policy to encourage excellence in internal design capabilities. Designers must display exceptional skills and achievement to be appointed Super Designer, which gives them additional incentives and executive rank.
LG Chocolate Black Label swiftly became a huge hit around the globe, and according to reviews, it was largely due to its uniquely personable characteristics, which were quite a departure from other mobile phones on the market.
in 2006, LG received numerous industry award including the Hong Kong-based Design for Asia Award (DFA) Grand Prize, and iF Design Award for the Chocolate Phone besides the prestigious Design Team of the Year award from red dot of Germany.
For the red dot design award, LG Electronics won the coveted 'Design Team of the Year 2006' award for its focus on design management. This, Screenshots was told, is the second time that the design department of an Asian company has won reddot's 'Radius' Trophy. The last time was won by Sony.
Notably, Cha is also responsible for the design of LG's second Black Label series, the new, full metal handset, Shine (preview in Screenshots soon).
Milestones in design-orientation
It is interesting to know LG, formerly known in such mundane brandname as Lucky-Gold Star, has evolved organically from its early years in the 1950's until its entry into the global stage in the 90s.

In 2006, the company announced the Design Management Declaration, and it seems imminent that this Korean brand will stride boldly into the global market place in the near future, with 2010 being a significant target for global dominance.
It LG's language, beyond 2010 will be an era where it will be recognised as the global pace-setter for culture-leading design.
'Value Innovation' -- Fulfilling needs, desire & dream
Evolving towards that goal, we were told that LG has been philosophically very 'Korean', as symbolised in its national emblem of a tai-chi like motif, which stands for balance.
According to Chang Ma, the youngest board member of LG Group and the head of Marketing Strategy Team who directed the LG Chocolate’s successful global launch last year, said LG's approach in digital designs, which may sound like a cliche, is to help the consumers make their dreams come true.
"As such, our industrial designs will incorporate a balance between concept creation and lifestyle creation, so that the needs, desire and dream of the customers must feature prominently in the overall value innovation process," Ma said.
To generate accurate input towards the value innovation of LG products, Ma said the company has, over the years, invested heavily in innovative industrial designs by setting up global design networks in Milan, New Delhi, Beijing, Tokyo and New Jersey.
"Our strategy has helped us win numerous industry awards," Ma added. "With our design aspects standing out prominently against our competitors, we then execute the entire global marketing campaign through an integrated strategy from product development and positioning, distribution and customer feedback."
"It is an endless loop that allows us to learn new things everyday," Ma said.
The company's latest scoop is beating several other mobile phone manufacturing to venture into a joint effort to produce the up-market lifestyle phone for PRADA.

PRADA just won the 'Best of the Best' at reddot, and iF Design Award of Germany, respectively
"It's a co-branding or rebranding exercise with PRADA," emphasised Ma. "PRADA believes in functionality and finesse in lifestyle, so do we. So, we co-developed the PRADA phone from ground up so that we arrive at the innovation value together."
The LG Design Management Center currently undertakes the overall design strategies for the entire conglomerate, including housing projects and interior designs and home appliances marketed through its subsidiary, GS.
The centre also create designs for packaging and aesthetics for in-house use and licensed customers.




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- Series #1: LG 2010... Aiming to be World's Top 3
NEXT: LG 2010: Global Market Overview and 2007 Business Strategies