LG Electronics opened ‘Ground220,’ a customer experience space, to build a positive and lasting relationship with Generation Z customers. It offers a lifestyle-focused experience rather than a product-centered one by organizing a variety of experiential programs and classes, and it maximizes immersive experiences by designing every moment with attention to small details through the combination of diverse content. Additionally, by allowing the younger generation to actively engage with the product and brand story through familiar cultures and lifestyles, it fosters active interaction with the brand. As a result, Ground220 contributes to shaping a positive image of LG Electronics among the younger generation and helps in establishing new customer relationships. Furthermore, by quickly capturing trends and new market opportunities among younger customers, Ground220 serves as a sensor for planning new experiences and discovering opportunities for new products and customer engagement.
"LG Electronics feels like an 'old folk tale' to us." This bold remark from an LG Crew member stirred the conference room. The gathering was attended by Jo Joo-wan, the CEO of LG Electronics, as well as all of the company's key executives. LG Crew is a Generation Z advisory group that LG Electronics has been running for four years to better understand future customers. The university students presenting explained, "We've often heard from our parents and older generations that 'home appliances are LG,' but to us, the brand feels distant, like an old folk tale with no direct connection." Despite LG's home appliances being widely known both domestically and globally, products like TVs, washing machines, and refrigerators are usually first purchased as part of a marriage trousseau, making the brand feel somewhat distant to young consumers in their twenties. This perception has been further solidified since LG Electronics withdrew from the smartphone business. Young consumers began to see LG as a “brand my mom likes” or “a brand that has little relevance to me.” Although there was already an awareness of the need to win over the younger generation, who are the future customers, the issue had now become more urgent and pressing.
The reason why LG Electronics' Customer Experience (CX) Center spearheaded the creation of 'Ground220'—an experiential space for younger customers—was due to this very need. With the goal of building relationships with Young Generation (YG) customers and creating "true fans" through better customer experiences, LG Electronics opened Ground220 in Yangpyeong-dong, Yeongdeungpo-gu, Seoul, last December. The term "Young Generation (YG)" refers to customers aged 18 to 34, who are in the stage before they become independent from their parents and start their own families. Since the commonly used term "Generation Z (MZ)" can include married individuals, LG Electronics established YG as a distinct concept. Ground220 signifies "a space where LG Electronics is connected to customers at 220 volts," and offers various experience programs and classes where customers can engage with LG's products and brand. Although it hasn't been open for a full year, Ground220 has already gained popularity among the Young Generation as a "trendy space," changing perceptions of LG Electronics. DBR analyzes the new approach of Ground220, which is expanding the customer base and improving relationships with customers by providing better customer experiences.
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