LG turns focus on online sales after Nakumatt hit

Nakumatt, which has been a big outlet for LG products, has shut several branches due to financial challenges. FILE photo | nmg 

By EDWIN MUTAI

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Summary

• LG Electronics says 60pc of its goods were sold through Nakumatt at the end of last year.
• Mr Janghoon Chung, the head of LG Middle East and Africa region said it is looking for other outlets to sell its products in Kenya.
• Nakumatt was presently put under the management of an administrator appointed by the High Court after sinking into debt.

South Korean electronics giant LG Electronics has announced plans to expand its online business in Kenya following the tribulations of Nakumatt Supermarkets, which accounted for 60 per cent of its sales.

Mr Janghoon Chung, the head of LG Middle East and Africa region said it is looking for other outlets to sell its products in Kenya.

“The Kenyan market is very interesting. It is rapidly changing and we are looking to expand our online business after what happened to Nakumatt,” he said on the sidelines of the ongoing conference dubbed LG Innofest 2018 in Cape Town South Africa.

Nakumatt was presently put under the management of an administrator appointed by the High Court after sinking into debt.

Mr Chung said at the end of last year 60 per cent of LG products in Kenya were sold through Nakumatt while the rest went through other outlets such as Naivas and Tuskeys supermarkets.

“We have embarked on aggressive sales of our products through the online market. Kenya and East Africa as a whole has online shoppers. Kenya has a sizable population of youth who shop online and that is what we are targeting,” Mr Chung said at the event held at Cape Town International Convention Centre.

“We project that within the next five years, Kenya’s online market will be very big. After the General Election, we have seen that the economy has stabilised and this is a good chance for us to enter the Kenyan market with our premium products that we are now showcasing.”

READ: Electronics giant LG picks Nairobi as pioneer Africa hub to launch its latest products

LG used the event to display its latest ultra-premium products and technologies to be rolled out this year. These include latest 69-inch OlED TV (LGW8), which made its debut at the 2018 Consumer Electronics Show in Barcelona Spain.

Mr Chung also revealed that LGs is focusing on management of wastes arising from the disposal of its products in Kenya.

“When we make products, we consider waste management system. We have considered recycling and we are currently developing products that will decompose,” he said.
He said LG currently conducts ewaste management in Kenya and has done clean-up of electronic waste in Naivasha and Nairobi National Park.

He said LG has reduced waste by developing long lasting products and melting of products through recycling.

Mr Chung said the electronics giant is not afraid of the influx of Chinese goods in Kenya because “our products are of premium quality.”

“Chinese brand is big with low prices. We have a strong market for our premium products and I know Kenyans like premium products. We have a pricing strategy for Kenya,” he said.