LG Electronics on global media hunt, 6-year incumbent Havas declines to pitch

LG Electronics has put its global media up for review after a six-year relationship with Havas Media Group. Prior to Havas, Marketing understands that the South Korean electronics company worked with Mindshare. In a statement to Marketing, a global spokesperson from Havas said the agency made a strategic decision not to take part in the upcoming review but has extended its contract by six months to provide LG Electronics to "effectively" manage the pitch. “The relationship between Havas Media Group and LG Electronics has been a long and fruitful one, and one that Havas Media has placed high value in. We thank LGE for their trust and commitment over the last six years,” the statement added. While dominant in the US, LG has also grown its presence in the Asia region. Early last year, LG Electronics was looking to open eight more LG brand stores in Malaysia. According to managing director K.T. Kim, the company will collaborate with local partners to open the LG brand outlets, The Star reported. Kim added that the cost for each new store is approximately RM200,000. He added that the company is aiming for a double-digit percentage growth in sales in Malaysia this year, and that it intends to aggressively promote the sales of its “premium and innovative products”. Meanwhile, several media reports said LG will be suspending the manufacture of mobile phones in South Korea due to calculated losses. According to Reuters, the electronics company will be shifting the production to a plant in Vietnam. Marketing has reached out to LG for comment.