We don’t link CSR with market dynamics

Chris Yi is the Asia Regional Managing Director of LG Electronics. The Korean electronics giant has built 100 transitional shelters for the earthquake survivors of Dolalghat, Nepal. Yi was recently in Nepal to hand over the homes to the locals. The Kathmandu Post caught up with Yi to talk about the company’s Corporate Social Responsibility (CSR) initiative and LGs presence in Nepal. Excerpts:

What is the purpose of your visit?

There were two major purposes. First was the opening of a new brand shop. And Second and the main purpose of my Nepal visit was handing over 100 shelters to the earthquake survivors. This is an emotional contribution from LG and the Chaudhary Foundation under the Chaudhary Group (CG), our partner in Nepal. I really appreciate the initiation of the CG Foundation for this kind of initiative. Without CG, we could not have done this kind of help. May be, we would have decided to donate some amount of money to the needy. But I am sure money is not an issue. There is a need for physical help. It was a great feeling to help the people of Nepal. Visiting the actual site and meeting the locals gave me a different perception of the devastation Nepal has sustained.

How important is it for a company like LG to extend direct relationship with the people with such initiatives?

No, I don’t think so. Extending direct contact with the people for the sake of market is not something we look forward to while carrying out such initiatives. It’s just about the responsibility of a big company like LG. We don’t tend to link our support to the people with market dynamics.

So how does the company look at CSR initiatives? How important is it for a global player like LG?  

We have a separate organisation under the chairman’s office in South Korea. Its main responsibility is to look after CSR, to find out people in need and help. LG’s CSR initiatives exist in several countries across the globe. In Ethiopia, we have built small schools. In Cambodia, we keep on sending some professional doctors. They visit remote areas and check the physical condition of the people. Through such activities, we aim to help low-income people. We have a strong commitment to support the people with low income level.

LG has handed over 100 homes to the needy people in Nepal. Will there be more support in the days to come?

At this moment, we do not have any additional topics or areas to help. Helping Nepal directly is difficult for us. However, we will continue supporting the initiatives and activities conducted by our partner CG.

How do you assess the Asian market? How important is Nepal for LG?

I have been looking at this market for the past seven months. Considering the turnover contribution, Nepalese market is small for LG. But we think this market has a big potential. At this point of time, we are more focused on how to offer better value with each and every product to the customers. We aim to deliver products which Nepalese people are not aware about or are not habituated with. In underdeveloped countries like Nepal, LG does not have a tendency of targeting the entire segment. We are targeting only some segments, and we are doing well in most of the segments.

LG  has strong presence in Nepal’s electronics market. In this context, What will be the company’s strategy?

We will continue to deliver innovative products to the market. From our view point, the focal is hearing from the customers and improving their experience of using electronics from LG. We are also trying to serve the different range of products in line with the needs of the people.

Dashain, the biggest festival in Nepal, is round the corner. Are there any new launches from the company targeting the mega festival?   

Yes, we have a number of products ready to enter the Nepal market. A number of products in the television segment, especially Ultra UDH Televisions, will be launched. We have already launched these products, but there will be a few more launches to minimise the gap and prices. There are a few other products which have been specifically targeted for Dashain.

Despite being one of the global leaders in electronics, LG seems to have lagged behind in the smartphone segment. Your take.

Smartphone is one of the biggest segments in electronics. We understand there is a need for two-tier attack in the market—one for the products from companies like Apple and Samsung and another for cheaper phone makers, including the Chinese. And to do this, we definitely have some plan on cards.

-Kathmandupost