10.25.21
Update: LG Household & Healthcare ranks at #13 on our latest report Top 20 Global Beauty Companies 2022.
LG Household & Healthcare is #12 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Corporate Sales
$7.2 billion
Beauty Sales
$5.1 billion
Key Personnel
Kwang Mo Koo, chairman and CEO, LG Corp; Young Soo Kwon, vice chairman, LG Corp; LG Corp.
Major Products/Brands
Cosmetics, hair care and skin care including The History of Whoo, O Hui, SU:M37, Belif, Beyond, Dermalift, CNP, CNP Rx, VDL, Isa Knox, Sooryehan, Code Glokolor, Vonin, Carezone, The Saga of Xiu, Nature Collection, TheFaceShop, FMGT, Dr. Belmeur, Yehwadam, Elastine, Organist, Reen, Silk Therapy, Veilment, Gentology
New Products
Physiogel hand cream, mist, toner and lip balm
Comments
In 2020, LG Household & Health Care laid a foundation to take the leap as a global player by expanding its cosmetics business in China and strengthening its business bases in the North American market.
Despite economic activities contracting globally due to stringent lockdown measures caused by Covid-19, the company achieved the No.1 market position in all three businesses (beauty, home care and non-alcoholic beverages) in South Korea—a first for the company. Gains, however, were uneven as sales of beauty products fell, while sales of home care and personal products increased.
Last year marked the first full year that The Avon Company was under the control of LG H&H. In 2019, LG agreed to purchase what was then known as New Avon from Cerberus Capital Management for $125 million.
Despite the addition of Avon, beauty product sales still fell 6.1% last year, as the cosmetics market was unable to recover from the effects of Covid-19. But there were signs of recovery. In the fourth quarter, duty-free sales of luxury brands managed a slight gain year-on-year. More good news came from China, as Q4 sales soared 41% and ended 2020 with a 21% gain. The best performing beauty brand was The First, which posted a 46% increase in 2020.
Sales of home and personal care products rose nearly 26% last year. LG credited a focus on differentiated premium brands such as Dr. Groot hair care and Veilment skin care. The Reen hair care brand posted a 53% increase in sales and Veilment’s sales rose 24%. The business also benefited from the fast-growing e-commerce market by expanding online brand stores, strengthening online marketing and actively promoting sales via e-commerce. The Physiogel line of hand cream, mist, toner and lip balm had a strong debut in Korea. Now, LG is expanding the brand into China, Japan and the U.S. Within China, premium brands such as Yungo and Dr. Groot drove sales growth.
2021 Highlights
For the first quarter of 2021, sales rose 7.4% and beauty sales returned to growth for the first time since the outbreak of Covid-19, spurred by continued growth of overseas business based on strong customer preference for LG’s luxury brands.
In September 2021, LG H&H purchased a 56% stake in Boinca, a California-based vegan hair dye manufacturer, for $100 million. The purchase is intended to boost LG’s overseas hair care business and strengthen its competitiveness in the premium hair care product market. Boinca owns high-end hair color dye brand Arctic Fox, which is popular among young customers thanks to its successful social media marketing and its opposition to animal testing.Also, in September, the Fair Trade Commission (FTC) slapped a fine of $262,400 on LG Household & Healthcare. The company was accused of abusing its power over franchise branches of The Face Shop by failing to keep commitments about discount events. According to the FTC, during discount events held between March 2012 and 2016, LG Household & Healthcare promised to compensate The Face Shop Stores for its products sold at steep discounts. According to the FTC, LG Household & Healthcare paid just half of what it promised.
Read Next: Coty is #13.
LG Household & Healthcare is #12 on this year's list of Top Global Beauty Companies.
Below is a look at the company's 2021 highlights, recent acquisitions, best-selling brands, and latest innovations.
Corporate Sales
$7.2 billion
Beauty Sales
$5.1 billion
Key Personnel
Kwang Mo Koo, chairman and CEO, LG Corp; Young Soo Kwon, vice chairman, LG Corp; LG Corp.
Major Products/Brands
Cosmetics, hair care and skin care including The History of Whoo, O Hui, SU:M37, Belif, Beyond, Dermalift, CNP, CNP Rx, VDL, Isa Knox, Sooryehan, Code Glokolor, Vonin, Carezone, The Saga of Xiu, Nature Collection, TheFaceShop, FMGT, Dr. Belmeur, Yehwadam, Elastine, Organist, Reen, Silk Therapy, Veilment, Gentology
New Products
Physiogel hand cream, mist, toner and lip balm
Comments
In 2020, LG Household & Health Care laid a foundation to take the leap as a global player by expanding its cosmetics business in China and strengthening its business bases in the North American market.
Despite economic activities contracting globally due to stringent lockdown measures caused by Covid-19, the company achieved the No.1 market position in all three businesses (beauty, home care and non-alcoholic beverages) in South Korea—a first for the company. Gains, however, were uneven as sales of beauty products fell, while sales of home care and personal products increased.
Last year marked the first full year that The Avon Company was under the control of LG H&H. In 2019, LG agreed to purchase what was then known as New Avon from Cerberus Capital Management for $125 million.
Despite the addition of Avon, beauty product sales still fell 6.1% last year, as the cosmetics market was unable to recover from the effects of Covid-19. But there were signs of recovery. In the fourth quarter, duty-free sales of luxury brands managed a slight gain year-on-year. More good news came from China, as Q4 sales soared 41% and ended 2020 with a 21% gain. The best performing beauty brand was The First, which posted a 46% increase in 2020.
Sales of home and personal care products rose nearly 26% last year. LG credited a focus on differentiated premium brands such as Dr. Groot hair care and Veilment skin care. The Reen hair care brand posted a 53% increase in sales and Veilment’s sales rose 24%. The business also benefited from the fast-growing e-commerce market by expanding online brand stores, strengthening online marketing and actively promoting sales via e-commerce. The Physiogel line of hand cream, mist, toner and lip balm had a strong debut in Korea. Now, LG is expanding the brand into China, Japan and the U.S. Within China, premium brands such as Yungo and Dr. Groot drove sales growth.
2021 Highlights
For the first quarter of 2021, sales rose 7.4% and beauty sales returned to growth for the first time since the outbreak of Covid-19, spurred by continued growth of overseas business based on strong customer preference for LG’s luxury brands.
In September 2021, LG H&H purchased a 56% stake in Boinca, a California-based vegan hair dye manufacturer, for $100 million. The purchase is intended to boost LG’s overseas hair care business and strengthen its competitiveness in the premium hair care product market. Boinca owns high-end hair color dye brand Arctic Fox, which is popular among young customers thanks to its successful social media marketing and its opposition to animal testing.Also, in September, the Fair Trade Commission (FTC) slapped a fine of $262,400 on LG Household & Healthcare. The company was accused of abusing its power over franchise branches of The Face Shop by failing to keep commitments about discount events. According to the FTC, during discount events held between March 2012 and 2016, LG Household & Healthcare promised to compensate The Face Shop Stores for its products sold at steep discounts. According to the FTC, LG Household & Healthcare paid just half of what it promised.
Read Next: Coty is #13.