homepage_name! > Editions > Number 040-041 > Interview - Predrag Todorovic
Interview
Predrag Todorovic, General Director of LG Electronics Representative Office for Serbia and Montenegro
LG Electronics is a global electronics company headquartered in Yeouido, Seoul, South Korea. LG Electronics is the world's second-largest manufacturer of television sets and third-largest producer of mobile phones.
It is the flagship company of LG Group, one of the world's largest electronic conglomerates.
The company was originally established in 1958 as GoldStar, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was derived. The current "Life's Good" slogan is a backronym. Before the corporate name change to LG, household products were sold under the brand name of Lucky, while electronic products were sold under the brand name of GoldStar .In January 2009 LG was able to buy the domain name, LG.com, placing it among the companies who own their two letter brand's domain name.
LG Electronics today is one of the world’s largest manufacturers of electronics products. As of 2009, this company is the third largest-producer of mobile phones and the second largest-producer of television sets in the entire world. Its central headquarters is situated in the LG Twin Towers in Seoul, South Korea. The company has about one hundred and forty nine subsidiaries all over the world that manufacture different kinds of electronic gadgets from home appliances to telecommunication devices. LG Electronics is a Top 100 global brand that is a dominant force to be reckoned within the electronics industry.
From a small South Korean company in the 1950’s, LG Electronics is now truly a global leader in the electronics market. A lot of households do have their products.
About LG Electronics business in Serbia, new technological now-how as well as about his personal challenge to make good team and run successfully the company, Mr. Predrag Todorovic, General Director of LG Electronics Representative Office for Serbia and Montenegro is talking to PROFIT Magazine.
Mr. Todorovic, could you tell us something about yourself: where were you born, where did you grow up? Where did you go to school and what is your education background?
I was born and grew up at Neimar, and then moved to Zemun, therefore I like to say that I am an authentic native Belgrade. I went to school in Belgrade, too. I attended experimental Primary School „Vladislav Ribnikar“, then High School Zemun, I enrolled and graduated from Foreign Trade Department at Business College and „Braca Karic“ University.
Why did you leave Art Academy and decided to study Economics? What was your career like after graduation?
Modern economy and business today are such that each individual, with a need to create something unique and creative, can express their artistic traits and leave assumed clichés. Art is still present in my life, I do the job I like, I have a very clear vision and realistic goals. Naturally, this synthesis has been continuously generating additional motivation both for personal and business development.
When I summarize my career so far, I see a rising line. Today, I try to follow this line together with the company LG Serbia and my colleagues. At the end of the day, when I am melted down by everyday events, I enjoy arts, my oasis of peace.
How many people do LG Electronics employ in Serbia and many of them are in your managerial team?
LG Electronics Serbia is a Representative Office with not many employees. Main principle we base our work on is „multitasking“, meaning that a small team does quite a fair amount of complex jobs.
Our team of 14 experts is divided into four business units. Manager is on the top of each unit, and other employees are delegated to business areas and they deal with sales support, professional trainings of staff, customer relations, etc.
LG Electronics was established back in 1958. Could you tell us something about its beginnings and positioning in Serbian market?
The company was established in 1958, and quickly travelled from an idea of young Korean people in the society burdened with civil war, to global giant in consumer electronics. Our Representative Office had similar, vertiginous rise. We have managed to become one of leading brands in Serbia within short period from 2006, when we made shy entrance in local market, not completely defined at that time, but meant stabile, strong positions of certain companies. Today, we hold proudly position number one regarding market share with many products within the range of consumer electronics. Our biggest success has been permanent introduction of new, innovative technologies and products in Serbian market, making key contribution to the goal of our country becoming equal member of modern global technical, technological and digital society.
What kind of business filed does the company cover and which products hold the best position and are the best selling at our market?
LG Electronics is a global leader and technological innovator in consumer electronics and include four business units - Home Appliances, Mobile Communications, Home Entertainment and Air Conditioning and energy solutions, recording total sales amounting to USD 48.2 bn in 2010.
Besides TV, 3D TV, home cinemas, the most selling products have been Total No Frost refrigerators, as well as Cooking&Cleaning program and monitors. Of course, I have to mention LG mobile telephones, which are also listed as our most selling products. Within this area, we have been introducing continuous innovations, such as 3D mobile phone, the first in the world, LG Optimus 3D, recently introduced in our market. We achieve strategic advantage compared to our competitors wherever we have brought innovative technologies, applied to everyday life.
What business results have the company recorded in Serbia and Montenegro during the years of economic crisis, compared to other countries in the region where the company has been operating?
According to internal results, we are currently the best in the territory of regional LG representative office, including ex-YU countries, Bulgaria, Albania and Hungary. We also hold the first position, locally in Serbia, regarding TV devices, 3D TVs, audio/video devices, screens and No-Frost fridges. We have been leaders in the sales of air conditioners for a decade – both split systems and commercial air conditioners, being emphasized in recent years. Of course, we experience crisis, primarily in the sales of basic models and so called premium products, including a group of products by which LG Electronics have been recognized after. Consumers in Serbia definitely have sophisticated taste and they look for devices, which are recognizable by design, besides functionality, that fit in each interior design and that is what LG products offer. Accordingly, I do hope that Serbian market will be soon able to compete western European markets in standard and that will glow in its true light and show full potential.
What are future business plans? Is the expansion of business possible under such heavy market conditions?
Plans for future period are reaching leading position regarding market share in all business fields. Of course, we plan to continue to strengthen our relations with consumers. We further develop our Customer care program through constant care of client, purchasers as well as our partners. Emphasized energy efficient and Eco friendly products, which will be implemented in our future products in Belgrade and Serbia, show trend of LG Electronics towards socially responsible business.
Regarding the employees, are there any plans to increase their number?
We certainly do. Serbian market, despite the years of crisis, has still been growing, together with LG Serbia. Our average annual increase in number of employees amounts to 30-40%, and pursuant to needs of certain departments and results recorded. There are periods during the year when some positions have been redefined. Mentioned percentage is annual average we stick to, along with constant growth in business and market share regarding both quantity and quality.
What is the total value of investment of LG Electronics to Serbia and what are further investment plans like regarding new technologies and brand development?
Investments of the company LG Electronics in Serbia can be shown best through one of our recent investments, establishment of LG AirConditioning Academy, value of which have exceeded EUR 300.000 so far. If we showed it as value of transferred knowledge and/or as value of direct know-how, such value would grow in proportion to arrival of new and advanced technologies, which LG Electronics’ products have been based on. We are ready to transfer our knowledge and experience to all our attendees and partners. Similar relations can apply to our other business segments and all technologies presented so far, in both Serbian and other markets we cover regionally.
Reliability and safety are what we all want when we buy home appliances. Are LG products reliable and safe?
They absolutely are. All LG products have all necessary certificates on safety, guarantee of quality and reliability. If our users have any problem, authorized LG Electronics technicians will come as soon as possible and solve problems, so our users could be satisfied. The guarantee itself we provide for our products confirm additionally the quality and reliability of LG products.
At the beginning of summer, you had an action “5 years worry-free” for some LG Electronics products. How do you manage to establish good relations with end-users?
LG Electronics in Serbia started big action for their users, within period from May 1 to May 30, named “5 years worry-free”. All LG Cinema 3D TVs, LW series, bought within this period, were included in this program meaning that after 2-year full guarantee, from 3rd to 5th year, buyers of LW series of LG TVs were entitled to free spare parts and their replacement, but LG would not incur costs of transport from and to service within this period.
This action is just the one out of the range of similar we have planned. In 2010 we had programs of extended guarantees for LED TVs and projectors but we have also introduced Zero Pixel Guarantee for all screens. We have 10-year guarantee for all Direct Drive engines for washing machines as well as for linear fridge superchargers.
One of actions we implemented last year in Belgrade, in order to establish better relations with our users is DMS (Direct Mobile Service) for certain groups of products. That way we wanted to approach our users and to solve their problems on the spot. Action had excellent results and that is why we have continued it. We have planned to cover other towns in Serbia by DMS.
In cooperation with VIP, LG have recently introduced first 3D smart phone in the world, with three-dual architecture. Could describe this in more details?
LG Optimus 3D is the first 3D mobile phone in the world, and this was regional premiere. LG Optimus 3D is an example of superior speed and strength achieve by unique LG “three dual” configuration. Dual core, dual channel and dual memory enable users to enjoy significantly improved performances, compared to other smart phones. Besides excellent multimedia characteristics, LG Optimus 3D is a smart phone enabling watching 3D contents without glasses.
3D recording and pictures can be seen either on the phone, without glasses or on 3D TV. Owing to architecture based on unique dual core processor, LG Optimus 3D will deal with all tasks more quickly, precisely and reliably. Tanks to this phone, users can record their memories in 3D form, anytime, anywhere.
What other innovative products do you plan to present in the next period?
The best way to explain is if we take home appliances and products we are launching in the next period as an example.
Smart diagnosis technology, which we implement on the products, enables detection of malfunction with no need for technician to come and/or with no need to go to service. Procedure is simple: dialing call center and pressing a button, let’s say, on washing machine, smart diagnosis finds the problems and sends information to service. In this case, it takes time to fix device is minimum. This is only one of technologies we will present and which clearly indicates our plans regarding market share and entire approach, regarding home appliances.
When we talk about mobile phone, our plans have been directed towards further development and implementation of dual core processor to smart phones, enabling incomparable faster phone operations and better use of applications. New display technology for smart phones makes them more illuminated therefore bright sunlight will be no longer a problem when using smart phones every day. In addition, of course, we must not forget 3D technology, we possess now for mobile phones.
Smart TV project, existing for some types of LW series, will also completely take primacy over LG TVs starting from autumn and will enable users to access internet, to surf, use predefined applications with swat TVs but also to play sensor motion games.
Regarding socially responsible business, how do you help the community where you do business?
Awareness of socially responsible business is one of our biggest business qualities. Considering social, environmental and economic aspects, creating pillars of sustainable development, LG further contributes creating and maintaining healthy environment. We have strongly emphasized elimination of hazardous materials from all products as well as decrease in power consumption of new devices (even by 60%), by which we wanted to influence preservation of our planet, not locally but globally as well.
On the other hand, pursuant to business policy of cooperation with local community, we invest in education of experts in the areas we deal with. One of the examples is establishment of Air Conditioning Academy, the first professional institution for free development of staff and students with air conditioning field.
How do you educate your employees?
We have special type of software – LG learning Net that provides many online courses, which can be attended by all employees. Courses have been tailored to suit each profile. Regarding management of LG Electronics Serbia, we have been constantly investing in training and seminars of different types, primarily in head office in Budapest, but in European learning center in Paris (LGE LC) as well.
The company was awarded with Business Partner Award in Consumer Electronics category. What does such award mean to you, personally and professionally?
My both professional and personal satisfaction is that LG Electronics Serbia was awarded Business Partner award, particularly since we celebrate a jubilee- five years of representative office in Serbia. The award shows that we have been recognized in five years only as a company bringing the most advanced technologies in consumers electronics to Serbia.
Is your job stressful? How do you relax and cope with stress?
Modern life and business bring a lot of stress that has become a part of our life. The only way to relax at the end of day, week or month is to do things I like, surrounded by people I care for, at the places that make me relaxed. Proximity of water, primarily of our rivers, the Sava and Danube, flushes stress. One of the ways to relax is cooking for people I love.
Of course, only if I have reached “nirvana”, I can dedicate to one on my greatest loves – painting, stimulated by inspiration that cannot exist without complete calmness.
Since you are from Belgrade, where do you like to go outside Belgrade?
I like water – Belgrade Rivers, the area around Slankamen, the Tisa confluence, but also Golubac and south flow of the Danube that is amazing at that part due to vastness and strength of water running. Of course, I always appreciate sea. Starting from the north of Adriatic, via Ada Bojana to all Greek seas and islands I like to visit when I have time.
It is impossible not to love Serbia with all its inland beauties. Incredible sites such as mountain Borac at the heart of Sumadija, is unique site and experience I can recommend.
What are you particularly proud of in your career, and what would you change if you could?
I am proud of my team, fist of all. I am proud of existing group of people, successful team with whom I managed to reach both personal and business result due to many hours of mutual work and efforts invested.
I have already mentioned realization of set goals. Constant realization and setting new goals represent healthy foundation for satisfaction and pride for each ambitious businessperson today.
For now and so far, I would not change a single thing even I could.
It is the flagship company of LG Group, one of the world's largest electronic conglomerates.
The company was originally established in 1958 as GoldStar, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was derived. The current "Life's Good" slogan is a backronym. Before the corporate name change to LG, household products were sold under the brand name of Lucky, while electronic products were sold under the brand name of GoldStar .In January 2009 LG was able to buy the domain name, LG.com, placing it among the companies who own their two letter brand's domain name.
LG Electronics today is one of the world’s largest manufacturers of electronics products. As of 2009, this company is the third largest-producer of mobile phones and the second largest-producer of television sets in the entire world. Its central headquarters is situated in the LG Twin Towers in Seoul, South Korea. The company has about one hundred and forty nine subsidiaries all over the world that manufacture different kinds of electronic gadgets from home appliances to telecommunication devices. LG Electronics is a Top 100 global brand that is a dominant force to be reckoned within the electronics industry.
From a small South Korean company in the 1950’s, LG Electronics is now truly a global leader in the electronics market. A lot of households do have their products.
About LG Electronics business in Serbia, new technological now-how as well as about his personal challenge to make good team and run successfully the company, Mr. Predrag Todorovic, General Director of LG Electronics Representative Office for Serbia and Montenegro is talking to PROFIT Magazine.
Mr. Todorovic, could you tell us something about yourself: where were you born, where did you grow up? Where did you go to school and what is your education background?
I was born and grew up at Neimar, and then moved to Zemun, therefore I like to say that I am an authentic native Belgrade. I went to school in Belgrade, too. I attended experimental Primary School „Vladislav Ribnikar“, then High School Zemun, I enrolled and graduated from Foreign Trade Department at Business College and „Braca Karic“ University.
Why did you leave Art Academy and decided to study Economics? What was your career like after graduation?
Modern economy and business today are such that each individual, with a need to create something unique and creative, can express their artistic traits and leave assumed clichés. Art is still present in my life, I do the job I like, I have a very clear vision and realistic goals. Naturally, this synthesis has been continuously generating additional motivation both for personal and business development.
When I summarize my career so far, I see a rising line. Today, I try to follow this line together with the company LG Serbia and my colleagues. At the end of the day, when I am melted down by everyday events, I enjoy arts, my oasis of peace.
How many people do LG Electronics employ in Serbia and many of them are in your managerial team?
LG Electronics Serbia is a Representative Office with not many employees. Main principle we base our work on is „multitasking“, meaning that a small team does quite a fair amount of complex jobs.
Our team of 14 experts is divided into four business units. Manager is on the top of each unit, and other employees are delegated to business areas and they deal with sales support, professional trainings of staff, customer relations, etc.
LG Electronics was established back in 1958. Could you tell us something about its beginnings and positioning in Serbian market?
The company was established in 1958, and quickly travelled from an idea of young Korean people in the society burdened with civil war, to global giant in consumer electronics. Our Representative Office had similar, vertiginous rise. We have managed to become one of leading brands in Serbia within short period from 2006, when we made shy entrance in local market, not completely defined at that time, but meant stabile, strong positions of certain companies. Today, we hold proudly position number one regarding market share with many products within the range of consumer electronics. Our biggest success has been permanent introduction of new, innovative technologies and products in Serbian market, making key contribution to the goal of our country becoming equal member of modern global technical, technological and digital society.
What kind of business filed does the company cover and which products hold the best position and are the best selling at our market?
LG Electronics is a global leader and technological innovator in consumer electronics and include four business units - Home Appliances, Mobile Communications, Home Entertainment and Air Conditioning and energy solutions, recording total sales amounting to USD 48.2 bn in 2010.
Besides TV, 3D TV, home cinemas, the most selling products have been Total No Frost refrigerators, as well as Cooking&Cleaning program and monitors. Of course, I have to mention LG mobile telephones, which are also listed as our most selling products. Within this area, we have been introducing continuous innovations, such as 3D mobile phone, the first in the world, LG Optimus 3D, recently introduced in our market. We achieve strategic advantage compared to our competitors wherever we have brought innovative technologies, applied to everyday life.
What business results have the company recorded in Serbia and Montenegro during the years of economic crisis, compared to other countries in the region where the company has been operating?
According to internal results, we are currently the best in the territory of regional LG representative office, including ex-YU countries, Bulgaria, Albania and Hungary. We also hold the first position, locally in Serbia, regarding TV devices, 3D TVs, audio/video devices, screens and No-Frost fridges. We have been leaders in the sales of air conditioners for a decade – both split systems and commercial air conditioners, being emphasized in recent years. Of course, we experience crisis, primarily in the sales of basic models and so called premium products, including a group of products by which LG Electronics have been recognized after. Consumers in Serbia definitely have sophisticated taste and they look for devices, which are recognizable by design, besides functionality, that fit in each interior design and that is what LG products offer. Accordingly, I do hope that Serbian market will be soon able to compete western European markets in standard and that will glow in its true light and show full potential.
What are future business plans? Is the expansion of business possible under such heavy market conditions?
Plans for future period are reaching leading position regarding market share in all business fields. Of course, we plan to continue to strengthen our relations with consumers. We further develop our Customer care program through constant care of client, purchasers as well as our partners. Emphasized energy efficient and Eco friendly products, which will be implemented in our future products in Belgrade and Serbia, show trend of LG Electronics towards socially responsible business.
Regarding the employees, are there any plans to increase their number?
We certainly do. Serbian market, despite the years of crisis, has still been growing, together with LG Serbia. Our average annual increase in number of employees amounts to 30-40%, and pursuant to needs of certain departments and results recorded. There are periods during the year when some positions have been redefined. Mentioned percentage is annual average we stick to, along with constant growth in business and market share regarding both quantity and quality.
What is the total value of investment of LG Electronics to Serbia and what are further investment plans like regarding new technologies and brand development?
Investments of the company LG Electronics in Serbia can be shown best through one of our recent investments, establishment of LG AirConditioning Academy, value of which have exceeded EUR 300.000 so far. If we showed it as value of transferred knowledge and/or as value of direct know-how, such value would grow in proportion to arrival of new and advanced technologies, which LG Electronics’ products have been based on. We are ready to transfer our knowledge and experience to all our attendees and partners. Similar relations can apply to our other business segments and all technologies presented so far, in both Serbian and other markets we cover regionally.
Reliability and safety are what we all want when we buy home appliances. Are LG products reliable and safe?
They absolutely are. All LG products have all necessary certificates on safety, guarantee of quality and reliability. If our users have any problem, authorized LG Electronics technicians will come as soon as possible and solve problems, so our users could be satisfied. The guarantee itself we provide for our products confirm additionally the quality and reliability of LG products.
At the beginning of summer, you had an action “5 years worry-free” for some LG Electronics products. How do you manage to establish good relations with end-users?
LG Electronics in Serbia started big action for their users, within period from May 1 to May 30, named “5 years worry-free”. All LG Cinema 3D TVs, LW series, bought within this period, were included in this program meaning that after 2-year full guarantee, from 3rd to 5th year, buyers of LW series of LG TVs were entitled to free spare parts and their replacement, but LG would not incur costs of transport from and to service within this period.
This action is just the one out of the range of similar we have planned. In 2010 we had programs of extended guarantees for LED TVs and projectors but we have also introduced Zero Pixel Guarantee for all screens. We have 10-year guarantee for all Direct Drive engines for washing machines as well as for linear fridge superchargers.
One of actions we implemented last year in Belgrade, in order to establish better relations with our users is DMS (Direct Mobile Service) for certain groups of products. That way we wanted to approach our users and to solve their problems on the spot. Action had excellent results and that is why we have continued it. We have planned to cover other towns in Serbia by DMS.
In cooperation with VIP, LG have recently introduced first 3D smart phone in the world, with three-dual architecture. Could describe this in more details?
LG Optimus 3D is the first 3D mobile phone in the world, and this was regional premiere. LG Optimus 3D is an example of superior speed and strength achieve by unique LG “three dual” configuration. Dual core, dual channel and dual memory enable users to enjoy significantly improved performances, compared to other smart phones. Besides excellent multimedia characteristics, LG Optimus 3D is a smart phone enabling watching 3D contents without glasses.
3D recording and pictures can be seen either on the phone, without glasses or on 3D TV. Owing to architecture based on unique dual core processor, LG Optimus 3D will deal with all tasks more quickly, precisely and reliably. Tanks to this phone, users can record their memories in 3D form, anytime, anywhere.
What other innovative products do you plan to present in the next period?
The best way to explain is if we take home appliances and products we are launching in the next period as an example.
Smart diagnosis technology, which we implement on the products, enables detection of malfunction with no need for technician to come and/or with no need to go to service. Procedure is simple: dialing call center and pressing a button, let’s say, on washing machine, smart diagnosis finds the problems and sends information to service. In this case, it takes time to fix device is minimum. This is only one of technologies we will present and which clearly indicates our plans regarding market share and entire approach, regarding home appliances.
When we talk about mobile phone, our plans have been directed towards further development and implementation of dual core processor to smart phones, enabling incomparable faster phone operations and better use of applications. New display technology for smart phones makes them more illuminated therefore bright sunlight will be no longer a problem when using smart phones every day. In addition, of course, we must not forget 3D technology, we possess now for mobile phones.
Smart TV project, existing for some types of LW series, will also completely take primacy over LG TVs starting from autumn and will enable users to access internet, to surf, use predefined applications with swat TVs but also to play sensor motion games.
Regarding socially responsible business, how do you help the community where you do business?
Awareness of socially responsible business is one of our biggest business qualities. Considering social, environmental and economic aspects, creating pillars of sustainable development, LG further contributes creating and maintaining healthy environment. We have strongly emphasized elimination of hazardous materials from all products as well as decrease in power consumption of new devices (even by 60%), by which we wanted to influence preservation of our planet, not locally but globally as well.
On the other hand, pursuant to business policy of cooperation with local community, we invest in education of experts in the areas we deal with. One of the examples is establishment of Air Conditioning Academy, the first professional institution for free development of staff and students with air conditioning field.
How do you educate your employees?
We have special type of software – LG learning Net that provides many online courses, which can be attended by all employees. Courses have been tailored to suit each profile. Regarding management of LG Electronics Serbia, we have been constantly investing in training and seminars of different types, primarily in head office in Budapest, but in European learning center in Paris (LGE LC) as well.
The company was awarded with Business Partner Award in Consumer Electronics category. What does such award mean to you, personally and professionally?
My both professional and personal satisfaction is that LG Electronics Serbia was awarded Business Partner award, particularly since we celebrate a jubilee- five years of representative office in Serbia. The award shows that we have been recognized in five years only as a company bringing the most advanced technologies in consumers electronics to Serbia.
Is your job stressful? How do you relax and cope with stress?
Modern life and business bring a lot of stress that has become a part of our life. The only way to relax at the end of day, week or month is to do things I like, surrounded by people I care for, at the places that make me relaxed. Proximity of water, primarily of our rivers, the Sava and Danube, flushes stress. One of the ways to relax is cooking for people I love.
Of course, only if I have reached “nirvana”, I can dedicate to one on my greatest loves – painting, stimulated by inspiration that cannot exist without complete calmness.
Since you are from Belgrade, where do you like to go outside Belgrade?
I like water – Belgrade Rivers, the area around Slankamen, the Tisa confluence, but also Golubac and south flow of the Danube that is amazing at that part due to vastness and strength of water running. Of course, I always appreciate sea. Starting from the north of Adriatic, via Ada Bojana to all Greek seas and islands I like to visit when I have time.
It is impossible not to love Serbia with all its inland beauties. Incredible sites such as mountain Borac at the heart of Sumadija, is unique site and experience I can recommend.
What are you particularly proud of in your career, and what would you change if you could?
I am proud of my team, fist of all. I am proud of existing group of people, successful team with whom I managed to reach both personal and business result due to many hours of mutual work and efforts invested.
I have already mentioned realization of set goals. Constant realization and setting new goals represent healthy foundation for satisfaction and pride for each ambitious businessperson today.
For now and so far, I would not change a single thing even I could.
