Emerging countries are highlighted in the LG

LG Electronics is expanding the number of retail stores in emerging markets to increase its market share of smartphones and a strong global presence in the consumer electronics segment.
Kim Ki, Executive Vice President of the South Korean company, said recently that the company plans to increase the number of stores abroad this year in more than 3 thousand shops, with the opening of units in India, the Middle East and Africa. The number probably will grow up to 20% in 2013, the company said. The stores will display products ranging from smartphones and televisions to appliances. The Executive did not inform what will this investment plan.
LG's retail expansion occurs while other smartphone makers strengthen their presence in the retail market to compete with Apple. Samsung recently announced plans to create brand stores in the United States within network drives Best Buy. These spaces will have mobile devices, cameras and accessories from the South Korean company. Meanwhile, Google-which has partnerships with several Asian manufacturers of devices-also develops a plan to launch retail stores in the United States, according to people familiar with the matter.
LG tries to win back consumers with the launch of its Smartphone Optimus line. The company was one of the largest manufacturers of mobile phones in the world until 2009, when he began to lose ground as the industry turning to smartphones, from 2010. The company's participation in the global market of mobile phones fell to 3.2% in the fourth quarter of 2012, up from 10.1% in 2009, according to research firm Gartner.
Currently, the LG occupies the fifth place in the rankings, behind Samsung, Nokia, Apple and ZTE. Since last year, however, the LG mobile phone business is recovering, with the disclosure of an operating profit margin of 2% in the fourth quarter, and 0.6% in 2012. With the index more stable, LG plans to step up its marketing efforts in the field of smartphones, said Ki, and retail expansion will complement these initiatives.
Some analysts warn that higher marketing costs will squeeze the company's profit margins. The banks are already under pressure due to the increasing cost of more expensive smartphones and market saturation. "The growth of marketing spending should bring some benefit to the participation of LG in the segment of smartphones, especially in medium and high prices des devices," said Mark Newman, an analyst at financial research and information firm Sanford c. Bernstein. "However, it will be difficult to compete with Samsung and Apple," he added.