The South Korea consumer goods company LG Household & Health Care is aiming to strengthen its luxury beauty brands as well as boost its overseas business as part of plans to drive growth.
During the firm’s first quarter (Q1) earnings presentation, CEO Lee Jung Ae highlighted its key business strategies.
This included plans to “enrich” the product line-up of History of Whoo, the firm’s flagship luxury brand, which accounts for over half (54%) of beauty sales. It also saw the need to “rebuild” its skin care brands Su:m37 and OHUI.
The premiumisation of its beauty and personal care portfolio will be key to driving growth of the business, says the CEO of Unilever’s India subsidiary.
In the quarter ending March, HUL’s beauty and personal care division grew by 10%. The firm said there was growth across the business, highlighting that skin care grew double digits led by premium brands.
Overall, during the 2023 fiscal year, the “powerhouse” division recorded 12% revenue growth, exceeding INR21,000Cr (USD256.7m), said Sanjiv Mehta, CEO and managing director.
Estée Lauder’s chief has emphasised the importance of travel retail to its global beauty business despite the rebound lag in Asia that has forced it to lower its full-year sales forecast.
Cosmetics major Estée Lauder Companies is anticipating annual net sales to fall 10% to 12% as recovery in Asia’s travel retail market remains sluggish.
L’Oréal’s CEO has expressed excitement over the prospect of acquiring Australian luxury brand Aesop, which he believes holds tremendous potential in Asia, and in particular, China.
CEO Nicolas Hieronimus said Aēsop was in line with the current trends in the beauty and personal care market, as evident in its performance.
He said the firm could help Aēsop “unleash its massive growth potential, notably in China and travel retail.”
K-beauty brand Dr. G is leveraging the international recognition of South Korea boy band SHINee to reinforce the brand’s presence overseas, starting with Japan and Vietnam.
The brand has been focusing on developing its business internationally to drive future growth and was targeting markets in Asia, Europe and North America.
As part of its strategy to increase brand awareness globally, the firm has outlined a ‘two-track idol’ strategy. This strategy relies on the celebrity endorsements of Korean actor Song Joong-ki and boy band SHINee.