LG Electronics Seeks Name Change and Streamlined Operations in China

South Korea’s LG Electronics Inc. will change a association name in China to New LGE China, sources from a organisation told Caixin.

The association will also find to take some-more approach control of a China business, with a internal branches directly stating to a domicile in South Korea instead of a Beijing office, Caixin has learned.

The name change was initial suggested by LG Electronics CEO Jo Seong-jin in a closed-door executive assembly final week, according to people informed with a event.

On Wednesday, a deputy from a company’s open family dialect reliable a devise to Caixin around e-mail.

“The stream name ‘LG,’ that comprises dual Latin letters and is tough (for Mandarin-speakers) to pronounce, is indeed incomprehensible to a consumers in China,” a deputy said, adding that a new Chinese name, “Xinaierji,” will make it a friendlier-sounding brand.

The name change was creatively due by Mu Gang, a then-chief manager of association overview of LG Electronics (China) Co. Ltd., a source said. Mu insisted that a company’s miss of a Chinese name has been a interruption for a enlargement in a nation — a conditions distinct that of opposition Samsung, whose Chinese name, “Sanxing,” is simply famous by Chinese consumers.

Under a due restructuring, a association will rearrange a businesses in China by shortening a 30-plus offices to five, that distinct before will all have equal standing and will news directly to a South Korean headquarters, according to employees from a company, who spoke on condition of anonymity.

The moves come as a association is experiencing setbacks in China, where a sales both in home appliances and cellphones increasingly are being encroached on by internal and other unfamiliar competitors.

Last year, LG Electronics’ cellphones accounted for reduction than 0.1% of a marketplace share in China, according to Strategy Analytics, a marketplace statistics provider.

Contact contributor Mo Yelin (yelinmo@caixin.com)

Article source: https://www.caixinglobal.com/2017-12-14/lg-electronics-seeks-name-change-and-streamlined-operations-in-china-101185209.html

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