LG Household & Healthcare is expanding its overseas advancement and is preparing for the future by developing next-generation brands as a leader in “K-Beauty.”
The company is aggressively expanding its presence in overseas markets into which the company already advanced such as China, Taiwan, Vietnam, the US and Japan, and ramping up K-Beauty’s influences in more than 20 countries, including Canada, Australia, Russia and the Middle East.
LG Household & Healthcare made a foray into China in 1995 and has 17 branches in Shanghai, Hangzhou, Nanjing, and Beijing, and operates a wide variety of channels such as department stores, cosmetics stores and online stores such as Tmall and JD.com.
In Vietnam, “Whoo” achieved a 35% year-on-year increase in sales last year through a differentiated concept called “royal Korean medicine” and luxury strategies. Especially, “Bicheop Jasaeng Essence,” a representative product of “Hu,” has been gaining popularity as a skin care product for local women who prefer bright and lively skin in Vietnam.
Meanwhile, The Face Shop, an LG Household & Healthcare brand, started its operation in Singapore in 2004 and currently has operations in 33 countries. The Face Shop is employing a strategy to aggressively pursue overseas markets in order to address the saturation of the increasingly competitive Korean market and achieve quantitative growth such as an increase in sales and grow into global brands.
The Face Shop entered China in 2007 and currently operates about 230 stores. In September 2013, the company established a joint venture in China, and is actively developing its business in China. The Face Shop enhances speed and efficiency in decision-making and business promotion by building the joint venture system.
In 2016, the Face Shop carried out co-marketing with Alibaba Tmall and O2O as part of online business expansion and continued customer management activities at Tmall’s flagship store.
The Face Shop is steadily enjoying stable sales in the Southeast Asian market including Singapore, Vietnam, Malaysia and Indonesia. In the Southeast Asian market, there are a lot of local consumers longing for the white skin of Korean women, and a whitening product, “Myunghan Miindo Seol” is a best seller. In addition, BB Cream, CC Cream and recently launched cushion products are receiving good responses.
LG Household & Healthcare, which posted 967.8 billion won (US$870 million) in sales in 2005, has been reborn as a global cosmetics company which increased sales six-fold, operating profit 12-fold, and net profit eight-fold in 12 years.