Farouk Systems strengthens hair care partnership with Korea’s LG H&H

By Deanna Utroske contact

- Last updated on GMT

Farouk Systems strengthens hair care partnership with Korea’s LG H&H

Related tags: Cosmetics

The two companies already collaborate, but a new deal lets Farouk and LG H&H advance manufacturing and distribution internationally.

Farouk Systems and LG H&H are creating an equal partnership joint venture called LG Farouk Co.

“The partnership will expand and enhance LG H&H’s presence in both the Korean and international hair care market through synergies formed in terms of research and development as well as marketing,”​ LG H&H affirms in a statement to the press.

How it started

Farouk Shami opened Farouk Systems in 1986 to serve the professional hair industry. Today the Houston, Texas – based company employs over 2,000 people and distributes product in more than 100 countries.

Farouk is best known for the CHI and BioSilk brands. In Korea, the company has been selling its CHI and Silk Therapy brands through a partnership with LG that began in 2013. That partnership made the Farouk products available through ecommerce and home-shopping channels, according to an item on koreaherald.com.

The new deal

This latest deal between Farouk and LG brings manufacturing into the partnership. “Under the new partnership, LG Farouk will begin locally manufacturing the two previously imported products in Korea,” ​writes Sohn Ji-young for the Herald. “And [the company will] introduce new Farouk hair care and styling products in the future, LG H&H said.”

The LG Farouk Co. joint venture also means that LG will have the advantage of Farouk’s distribution network here in this region. So, “the Korean cosmetics giant also expects to leverage Farouk’s vast sales and distribution networks in North America -- which spans more than 200,000 hair salons and beauty specialty stores -- to introduce its own premium hair care products and cosmetics in global markets,” ​according to Sohn Ji-young.

A few business notes

LG Health & Household does business in a number of sectors like beverage, laundry, and home fragrance. But in the personal care and cosmetics space the company works with brands including Dermalift, philosophy, VOV, Elastine, and Phyto Derma.

In July, when the company released its most recent quarterly data, LG reported its highest earning Q2 ever, with cosmetic sales up just over 33% and luxury cosmetic sales up 56%.

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