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Going Big in the U.S.
Take a peek at Samsung and LG, as they set their sights on the lucrative U.S. built-in market for home appliances. Instead of relying solely on their traditional business-to-consumer (B2C) model, they are aiming for the high-value B2B sector, partnering with builders and construction companies to increase their presence. This shift comes as the general appliance market shows signs of slowing down [1].
Samsung:
Samsung sees the U.S. built-in appliance market as a fresh avenue for growth and is working to create sales channels through building partnerships with construction companies. The ultimate goal is to have Samsung appliances seamlessly integrated into North American homes and establishments [1].
To cope with tariff implications, Samsung may refocus some of its home appliance and TV production to the U.S. This Production 2.0 strategy aims to minimize costs and maintain competitiveness by adjusting the manufacturing footprint [3].
LG:
LG is joining the party, aggressively targeting the U.S. built-in market by leveraging its strong brand in appliances to penetrate the B2B space. LG is forging relationships with builders and developers to expand its reach [1].
Should tariffs persist, LG plans to bump up prices to offset the cost pressures, striking the right balance between tariff costs and maintaining profitability [2][4]. LG's growth strategy includes expanding its U.S.-based production capacity, potentially adding a refrigerator production line to its Tennessee factory to lower tariff exposure and boost its standing in the U.S. market [5].
LG's production strategy in the Americas is broken down into three regional hubs: Tennessee (North America), Mexico (Central America), and Brazil (South America), positioning the company to tailor its supply chains to regional market needs [5].
Both companies are treading a tricky course of navigating U.S. trade policies through local production localization and tariff contingency planning while connecting with new B2B partners focused on the built-in market. This strategic shift allows Samsung and LG to hold their own against established manufacturers and capitalize on growth opportunities in the premium home appliance segment in North America [1][4][5].
Samsung seeks to capitalize on the U.S. built-in appliance market by forming partnerships with construction companies to sell their appliances to builders and developers, aiming for the lucrative B2B sector [1]. To mitigate tariff implications, Samsung might transfer some of its home appliance and TV production to the U.S. [3].
LG aims to expand its presence in the U.S. built-in market by leveraging its strong appliance brand to penetrate the B2B space [1]. If tariffs continue to affect costs, LG plans to adjust prices to maintain a balance between tariff costs and profitability [2][4]. LG also plans to increase its U.S.-based production capacity, potentially adding a refrigerator production line to its Tennessee factory to lessen its tariff exposure [5].
This strategic shift by Samsung and LG to the U.S. built-in market not only requires navigating U.S. trade policies but also includes local production localization and tariff contingency planning to maintain their competitive edge and capitalize on growth opportunities in the premium home appliance segment [1][4][5]. In addition, LG structures its production strategy in the Americas into three regional hubs: Tennessee (North America), Mexico (Central America), and Brazil (South America), allowing it to adapt its supply chains to regional market needs [5].
