LG H&H is a major fast-moving consumer goods company that owns business in beauty and personal care, household goods, and beverages.
In her new year’s address, the firm’s new president and CEO Lee Jung-ae noted that reinforcing its international position was one of its key initiatives for the new year.
Lee highlighted aspirations for the company to “leap forward” as a global luxury beauty company. “The expansion of overseas business must be continued and strengthened.”
In particular, the company has two major targets: China and North America.
Like many cosmetics companies, LG H&H was weighed down by China’s strict COVID-19 policies and the dampened consumer sentiment among consumers. “Last year's rapid market change gave us a lot of difficulties," said Lee.
With China on the road to opening up, the company hopes to restore its once booming business in the lucrative beauty market.
“We plan to focus on reorganising the battle line by strengthening the brand portfolio and expanding the local distribution base in accordance with the changing direction of the market and customers,” said Lee.
As for the North American market, Lee noted that the plan was to introduce more brands and products into the market.
"We plan to proceed step-by-step with the preparation of brands and products suitable for the local market and customer characteristics, and the reinforcement of local business operation capabilities."
The company recently announced that it had appointed Moon Hye-young as the new head of its Americas business. Based in the US, Moon’s previous experience included stints in Amazon and Starbucks.
According to LG H&H, Moon worked to help digitally enhance the Starbucks Rewards programme.
Making fresh attempts
Last November, LG H&H named Lee its first female CEO, replacing Cha Suk-yong. Prior to this, Lee served as the head of several units in the company, including household goods, luxury beauty and beverages.
Moving forward, the beauty market and consumer needs are set to continue evolving at a swift pace, something Lee seems to be aware of.
While highlighting the strength of the company’s celebrated beauty brands – such as the History of Whoo, Belif and Su:m 37 – she also stressed the need to ensure their longevity.
She said its brands needed to be the ones consumers “continued to look for in the next five to 10 years.”
To do so, Lee said the company would have to question the novelty and uniqueness of its product developments. “I will encourage new and fresh attempts to actively take place in line with changes in the market and customers and I will highly value them.”
She added: “In order to support new and colourful ideas and lead them to business results, we are not negligent in equipping the authenticity of the brand with high-quality products, such as practical efficacy and value that customers can experience, and packaging that captures customer sensibility and convenience. It is difficult, but it is something that must be done stubbornly without compromise.”