LG Electronics is expanding its lucrative premium appliances in emerging nations.

The Korean tech giant’s home appliance unit’s record-breaking operating profits in the first quarter were mainly driven by strong sales of its premium appliances in North America. Sales generated in the market last year accounted for around 30 percent of the company’s total sales. Shipment of the firm’s organic light-emitting diode TVs also doubled in the US market during the period. 

This year, LG plans to diversify its premium appliances in emerging markets, mainly those in the Middle East.

Last month, the tech firm opened a 270-square-meter premium brand shop in Cairo, Egypt, allowing local consumers to experience LG’s new premium products such as OLED TVs and its premium washing machine Twin Wash.

A month earlier, LG opened its premium appliance shop in the Mall of Qatar in Qatar.

Apart from Egypt and Qatar, the Korean tech firm is currently running premium brand shops in Iran, Lebanon, Jordan, UAE and Saudi Arabia.

“We will continue to have a stable profit structure by expanding super premium products including LG Signature alongside Twin Wash and steam clothing care Styler,” LG said.

In the first quarter, LG’s home appliance unit posted record-breaking operating profits, beating its local rival Samsung Electronics by more than 50 million won ($44,152).

In the January-March period, LG’s home appliance unit posted 8.9 trillion won in sales and 90 million won in operating profits, a 10 percent growth year-on-year. It was the first time LG saw a double-digit growth in its appliance business.

During the same period, Samsung’s consumer electronics posted 10.3 trillion won in sales and 38 million won in operating profits, a 3.7 percent rise year-on-year.

Samsung is also focusing on emerging nations with its premium home appliances this year. Early this month, the tech firm held a launch event for its premium television QLED TV at Marriot Hotel in Delhi, India.

By Shin Ji-hye (shinjh@heraldcorp.com)