LG Electronics is expanding its China ecosystem manufacturing (ECM) strategy by outsourcing production of air purifiers, following its adoption of the model for robot vacuum cleaners. The move is seen as part of the company's effort to strengthen cost competitiveness and maximize profitability through broader strategic partnerships with Chinese manufacturers.
LG Electronics recently obtained radio certification from South Korea's National Radio Research Agency for an air purifier (model AS076MWHC) manufactured by Chinese company Invitop. The certification indicates that LG has outsourced production of a specific air purifier model scheduled for release in the Korean market.
An analysis of air purifier models certified by the agency over the past five years shows that this is the first time LG has registered an air purifier produced exclusively by a Chinese manufacturer. Previously, LG either manufactured air purifiers in-house or jointly produced them with Chinese partners, marking a significant shift in its manufacturing strategy.
Founded in 2011, Invitop is an original design manufacturer (ODM) with a broad portfolio that includes air purifiers, dehumidifiers, portable air conditioners, ice makers, and blenders. The company has an annual production capacity of around six million units and is considered to possess the technical expertise and mass-production capabilities required by LG.
LG's China ECM strategy has been gaining momentum. For robot vacuum cleaners launched this year, the company expanded its manufacturing partnerships beyond its existing supplier, Silver Star, to include Picea. LG also plans to utilize Chinese contract manufacturers, including KTC for monitor signage products and Invitop for dehumidifiers.
The move is widely seen as reflecting the strategy championed by Lyu Jae-cheol, president of LG Electronics' Home Appliance Solution (HS) Company, to make greater use of China's manufacturing ecosystem. At a town hall meeting in May, Lyu said, “By leveraging China's ECM capabilities, we will produce competitive products and target both the premium and volume segments of the global market.”
As China's manufacturing capabilities continue to advance across industries including home appliances, batteries, and robotics, LG aims to strategically utilize the country's manufacturing network to broaden its product lineup while lowering production costs. Rather than competing head-on with Chinese manufacturers, the company is seeking to collaborate by leveraging China's manufacturing infrastructure.
Industry observers expect LG to further expand this strategy. Retaining product design in-house while outsourcing manufacturing to China is viewed as a more profitable business model. Thanks to economies of scale, Chinese manufacturers can significantly reduce production costs, with some products reportedly priced at less than half the manufacturing cost of comparable units produced in South Korea.
Samsung Electronics has also said it will focus on expanding its premium home appliance lineup while increasing ODM production of mid-range and entry-level products to improve operational efficiency. The shift by South Korea's two leading appliance makers toward greater outsourcing reflects a broader effort to strengthen profitability and streamline their business structures.
An industry official said, “Chinese manufacturers have become competitive enough to meet the stringent quality standards of major South Korean companies. As a result, Korean appliance makers are likely to maximize manufacturing efficiency while focusing more on differentiated services, such as subscription offerings and smart home platform connectivity.”
