LG H&H is a major fast-moving consumer goods company that owns businesses in beauty and personal care, household goods, and beverages.
In his new year address, Cha Suk Yong, vice chairman and CEO of LG Household & Health Care (LG H&H), outlined the change he was expecting the company to face this year.
“The new year will be when the real post-COVID-19 era begins. But at the same time, it’s expected that there will be some pains as we move towards normalising the economy. In times like these, we need to be faithful to the basics and focus on customer value and all our thoughts and actions should start from customer value,” said Cha.
The company has plans to focus on its beauty business in the new year, emphasising the importance of its luxury beauty division, which consists of brands such as its flagship, History of Whoo.
As part of its ambitions to advance its luxury beauty business, the firm has its sights set on strengthening its business in North America.
“To leap forward as a truly global luxury beauty company, we must continue to expand our business in the North American market, which is the world's largest market that creates trends,” said Cha.
He added that the firm will work to push Whoo, which has already achieved great success in Asia, in North America.
Additionally, the company will leverage on other brands such as Arctic Fox, which it brought under its hair care portfolio after acquiring acquire a 56% stake in US-based Boinca for $100m.
Arctic Fox is a vegan hair care brand founded in 2014. The brand is popular among millennials and gen-Z consumers with over two million followers collectively on Tiktok, Instagram and Facebook.
According to the company Arctic Fox is among the top brands in its category on major American channels – number one on Amazon and Sally Beauty, and number two in Ulta Beauty.
“We need to expand our relationship with offline retailers and expand our business by utilising the digital capabilities of Artic Fox, which we acquired last year,” said Cha.
The company can also leverage brands with global recognition such as Physiogel, which it acquired in 2020.
At the same time, it is aiming to nurture brands such as Sum:37, OHui and CNP, which have the potential to become “megabrands”, said Cha.
He elaborated that the company will be further strengthening its digital capabilities globally throughout the business.
“We need to strengthen our capabilities in the digital market, which has already become an irresistible trend in the global economy and is taking root in customers’ lives.”
This would include reinforcing its digital marketing capabilities on social networking sites and adopting new technology like artificial intelligence (AI) to attract millennials and Generation Z consumers.
Cha concluded by emphasising that the company should work towards the fundamentals of customer satisfaction.
“Ducks keep their feet in the water even in the cold winter… You can catch the fattest fish only by immersing your feet in the changing trends of customers and sensitively understanding the trends.
“We need to understand our customers in detail and differentiate them with products that are tailored to them so that we can provide them with an impressive experience they have never felt before.”