10.25.23
LG H&H is #16 on our Top Global Beauty Companies 2023 Report.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands and latest innovations.
Beauty business sales, which include skincare, makeup and others, decreased 27.7% yoy to $4 billion. Based on strong brand awareness, Whoo entered and topped the rankings on new fast-growing e-commerce platforms such as TikTok and Kuaishou.
However, as the unstable market conditions continued throughout the year, Beauty’s overall performance, including China onshore business and travel retail, was greatly affected by the rapid spread of Covid-19 cases in China due to the changes in the zero-Covid policy. Meanwhile, in the domestic market, various attempts were made to enrich brand assets for long-term performance even under an uncertain macro environment. O HUI presented ‘The First Maison’ VR exhibition, which captures the identity of ‘The First’ line, and Belif ran an offline pop-up event that incorporated ‘Belif Universe,’ the brand’s identity and story, to communicate with consumers across channels.
Meanwhile, Home Care & Daily Beauty (HDB) business sales increased 7.4% yoy to $1.5 billion. An unfavorable operating environment persisted for HDB as the rise in inflation slowed consumption and consumers became more price sensitive. Improving profitability was difficult due to high price levels, high exchange rates and high wages, but HDB continued to invest in premium brand marketing. In particular, Dr. Groot and Physiogel continued to strengthen brand loyalty by increasing consumer engagement through digital media channel activation. HDB also expanded its production portfolio. Physiogel unlocked new business opportunities in the beauty category following the successful launch of ‘Physiogel Dailimune Defense Cushion’ that reported solid performance from home shopping channels at year end.
For the first quarter of 2023, sales increased 2.4% yoy. Beauty and HDB sales grew 0.3% yoy and 1.9% yoy, respectively. Beauty sales were flat yoy due to delayed consumption recovery in China. In fact, the China onshore business reported a double-digit drop in sales. Meanwhile, HDB sales growth was led by strong sales performances of Oral Care (Perioe, Euthymol) and Physiogel in Daily Beauty.
In March 2023, LG H&H Americas, the North American division of the company, announced two new leadership appointments: Hyeyoung Moon as CEO, LG H&H Americas, and Liza Maldonado as Head of Direct Selling for the U.S., Puerto Rico & Caribbean. Moon will oversee all of LG H&H Americas’ business which includes LG H&H USA, Avon and Boinca.
Maldonado will now lead the U.S. Avon field sales organization as the head of direct selling for the U.S., Puerto Rico and Caribbean. This announcement marked the first time in history LG H&H Americas named two women in leadership roles.
Read Next: Colgate-Palmolive is #17.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands and latest innovations.
Corporate Sales:
$5.9 billionBeauty Sales:
$4 billionKey Personnel:
- Jung Ae Lee, CEO
- Hong Ki Kim, CFO, CRO
- Beom Jong Ha, president and CFO, LG Corp., chairperson of BOD
- Hyeyoung Moon, CEO, LG H&H Americas
Major Products/Brands:
Cosmetics, hair care and skincare 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, The Crème Shop.New Products:
Sum 37˚ Micro-Active Line, The Crème Shop Hello Kitty & BT21 Printed Essence Sheet Mask Collection, Crème Summer Beauty Box, Glint Dewy Moon Natural Glow Highlighter Stick, The History of Whoo Gongjinhyang Neck and Face Repair Sleeping Repair Mask.Financial Summary:
In fiscal 2022, due to a challenging business environment and sluggish consumption in both the domestic and global market due to worldwide economic recession, as well as beauty suffering from sales loss across travel retail and China onshore business, LG H&H sales decreased 11.2% year-over-year to $5.9 billion.Beauty business sales, which include skincare, makeup and others, decreased 27.7% yoy to $4 billion. Based on strong brand awareness, Whoo entered and topped the rankings on new fast-growing e-commerce platforms such as TikTok and Kuaishou.
However, as the unstable market conditions continued throughout the year, Beauty’s overall performance, including China onshore business and travel retail, was greatly affected by the rapid spread of Covid-19 cases in China due to the changes in the zero-Covid policy. Meanwhile, in the domestic market, various attempts were made to enrich brand assets for long-term performance even under an uncertain macro environment. O HUI presented ‘The First Maison’ VR exhibition, which captures the identity of ‘The First’ line, and Belif ran an offline pop-up event that incorporated ‘Belif Universe,’ the brand’s identity and story, to communicate with consumers across channels.
Meanwhile, Home Care & Daily Beauty (HDB) business sales increased 7.4% yoy to $1.5 billion. An unfavorable operating environment persisted for HDB as the rise in inflation slowed consumption and consumers became more price sensitive. Improving profitability was difficult due to high price levels, high exchange rates and high wages, but HDB continued to invest in premium brand marketing. In particular, Dr. Groot and Physiogel continued to strengthen brand loyalty by increasing consumer engagement through digital media channel activation. HDB also expanded its production portfolio. Physiogel unlocked new business opportunities in the beauty category following the successful launch of ‘Physiogel Dailimune Defense Cushion’ that reported solid performance from home shopping channels at year end.
For the first quarter of 2023, sales increased 2.4% yoy. Beauty and HDB sales grew 0.3% yoy and 1.9% yoy, respectively. Beauty sales were flat yoy due to delayed consumption recovery in China. In fact, the China onshore business reported a double-digit drop in sales. Meanwhile, HDB sales growth was led by strong sales performances of Oral Care (Perioe, Euthymol) and Physiogel in Daily Beauty.
In March 2023, LG H&H Americas, the North American division of the company, announced two new leadership appointments: Hyeyoung Moon as CEO, LG H&H Americas, and Liza Maldonado as Head of Direct Selling for the U.S., Puerto Rico & Caribbean. Moon will oversee all of LG H&H Americas’ business which includes LG H&H USA, Avon and Boinca.
Maldonado will now lead the U.S. Avon field sales organization as the head of direct selling for the U.S., Puerto Rico and Caribbean. This announcement marked the first time in history LG H&H Americas named two women in leadership roles.
Looking Ahead:
In Q2 2023, LG H&H reported $1.4 billion in sales, a decline of 3.0% year-over-year, mainly due to Beauty’s 8% yoy decline, while HDB sales grew slightly yoy. Despite positive growth in domestic channels, Beauty sales decreased due to China’s lagging consumption recovery. New product launches included O HUI Ultimate Fit Jean Cushion and Glint highlighter ‘Peach Moon.’ Whoo introduced Hwanyu Line renewal and Sum37° presented ‘Water-full’ Line renewal. HDB sales slightly increased due to Daily Beauty and online channel growth. Daily Beauty growth was driven by strong performance of Premium brands Physiogel and Euthymol.Read Next: Colgate-Palmolive is #17.