South Korea's LG predicts 20 per cent growth in Middle East

The South Korean electronics manufacturer LG is expecting sales growth of 20 per cent across the Middle East and North Africa (Mena) region next year.

"This is an emerging market and we are targeting it," said Duk Young Kim, the president of LG Gulf. "We will be investing a good amount of money here."

Mr Kim expects a 13 per cent growth in the GCC region, most of which will be coming from Kuwait and Oman.

This year, LG expects revenues of about US$4 billion to $5bn (Dh14.7bn to 18.4bn) across Mena, about 10 per cent of the company's global sales.

The manufacturer, which has just launched an 84-inch ultra high definition (HD) smart television, has seen much of the boost come from sales of its televisions.

"TV is the fastest growing, [but] the market for smart television is small. It is less than 10 per cent, maybe next year it will reach 10 per cent," said Mr Kim.

"Customers are not using it well at the moment because there are too many features and functions."

In a recent poll conducted by LG in the UAE, 44 per cent of consumers said they would consider buying a smart TV in the future with 35 per cent considering a 3D smart TV.

The most important feature of a smart TV for consumers is an internet connection along with connectivity to other devices.

Despite the positive responses, sales are still low.

Outside the GCC broadband infrastructure is under-developed. The high prices have also deterred customers, who opt for normal televisions without the array of features that a smart TV offers.

"It will grow. Sales are impacted by broadband infrastructure and price.

"Eventually when the cost of manufacturing smart TVs goes down, then customers will buy," said Mr Kim. Attitudes have not shifted as fast as the technology according to Mr Kim.

Consumers want to be inactive and relax when they watch television, rather than browse the internet, or connect personal devices like a smartphone to the TV.

"That is why we are promoting and teaching people the benefits of smart TV. It takes time to change customer behaviour," said Mr Kim.

LG will also be targeting the smartphone market to help to boost sales.

The company produces Google's Nexus phone which has proved popular in the United States.

LG will be launching its Optimus G model, intended to rival the likes of the Apple iPhone and Samsung's S3, initially in the US next year and then later in the GCC.