LG to invest W100b for product design

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By Ko Kyoung-tae Korea Herald/07 May 2008
Summary
LG is going to invest 100milion won for design in this year. It has increased by 10bilion won each year since 2006, and they also plan to hire more designer this year to 700 in order to strengthen their design power. The decision was made at the LG Design Committee, which was established last year by Chairman Koo Bon-moo. Because he emphasizes that design is the important to reach competitive advantage in global market beyond quantity, price and technology. They have launched ‘Super designer program’, which give the best designer in the company, so that they reinforce design-first management philosophy. And they also diversify their design staff so as to meet global requirements.

My opinion
Nowadays, customers aren’t satisfied by just quality and price, particularly in developed country. Of course, if it is prominent high quality product, it could have monopolistic status. However, if their competitors have similar technology, they need to concentrate on other factor. I think the important factor is design. For example, LG and Samsung have similar technology, but what is the factor to make difference each other? Is it price? No, because they all produce a low price mobile phone, and it can’t be the best product. I think it probably depends on design. There are some cases of innovation of design in LG. So far LG Electronics has produced ‘Chocolate’; it concentrates on simple design rather than function, ‘Shine’, it used stainless steel instead of plastic, and ‘Prada’, it is made in combination with luxury brand.. Therefore, I think striking design leads to a success and increased demand.
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