Goldstar picks a brand new name

Korean firm changes name to LG to leave behind an unsuccessful brand

Korean conglomerate Lucky Goldstar is set to embark on a massive branding spree, dropping the name Goldstar and describing itself as LG.

Kieran Sumner, who heads LG Electronics, said it will spend large sums of money in national advertising campaigns to rebrand the company.

?The Goldstar name will disappear,? he said. ?Our handheld CE products will be branded as LG coinciding with the launch.?

Sumner said that as a brand Goldstar had not been successful and it was important not to associate the company?s other range of interests with that.

As well as manufacturing monitors, CDs, DVD-Roms, video CDs, palmtops, digital cameras, and video conferencing kit, the Korean parent has interests in the petrochemical and ship building industries. The LG branding exercise will also extend across those areas.

Sumner said LG Electronics will manufacture 15in and 17in monitors at its plant in Newport, Gwent, starting in October, and is likely to extend to 19in and 21in units in the future. The UK plant will act as a European centre.

LG sells through distributors Ingram, Osmosis, Ideal, Micro P and Northamber. It will also push more products through the retail channel, including Byte, DSG and Crown.

Sumner said he was particularly keen for the channel to understand the changes. Alex Campbell, marketing manager at Osmosis, welcomed the move, saying the word Goldstar had the wrong connotations for the company.