LG Electronics’ Home Entertainment Division has reaffirmed its commitment to independent dealers after recently ending its relationship with the Nationwide Marketing Group.
In an open letter to retailers, LG senior VP Christopher Hamdorf said the decision to sever ties with the buying group was based on multiple factors. As a result, the consumer electronics unit is re-allocating its resources to better support its independent channel partners, which will “clear a path to develop deeper retailer relationships for mutually beneficial and profitable growth,” Hamdorf said.
Like its sister home appliance line, LG remains a coveted top-tier brand within the consumer tech business. Its award-winning OLED TVs are the No. 1-selling premium displays in the U.S. according to The NPD Group, and thanks to BrandSource’s preferred relationship with LG, its OLED models are a mainstay of AVB’s Expert Warehouse distribution arm.
Hamdorf added that the distribution network for the Home Entertainment Division, from which the independent channel pulls inventory, remains “a vital and focused” pipeline for the vendor.
Read Hamdorf’s letter below:
As you may have heard, LG Home Entertainment has ended its relationship with Nationwide Marketing Group.
Our decision to sever ties with Nationwide was based on a variety of factors, but please know that LG’s commitment to the independent retail channel has never been stronger. In fact, this move will allow us to re-allocate our resources to better support the independent retailers that have been such an integral part of our growth and leadership in the premium TV business.
Going forward, we expect this change will clear a path to develop deeper retailer relationships for mutually beneficial and profitable growth. And rest assured that our distribution network, from which independent retailers order product, remains a vital and focused channel of distribution for LG HE.
Thank you very much for your ongoing support. We look forward to continued strong partnerships with independent retailers to drive the growth of premium home entertainment products. To discuss support of your business, please contact your account manager. If you have other questions, feel free to reach out directly to me.
Senior Vice President, Home Entertainment Sales
LG Electronics USA