The South Korean consumer goods company has been prioritising its business in North America and has been working to expand its influence in the market with three brands – The Face Shop, Belif, and CNP Laboratories.
In her New Year’s address dated January 2, chief executive Lee Jung-ae reinforced the firm’s commitment to North America, highlighting the success it had in 2024.
Lee said this year would focus on “restructuring” and “rebalancing” the business.
“In the Americas, we will strengthen the products that appeal to the younger generation of customers with Belif, CNP, and The Face Shop, and focus on their marketing investments.”
She added that the company intends to utilise artificial intelligence to strengthen its digital commerce and marketing capabilities.
Lee elaborated that the company would accelerate the brands online with a focus on e-commerce marketplace Amazon as a key channel.
The company had observed commercial success of The Face Shop’s Rice Water Bright skin care line as well as CNP’s Propolis Lipcerin lip balm on Amazon last year, she said.
At the same time, the firm will expand its physical retail footprint.
Last year, The Face Shop expanded its offline presence through major retailers such as Walgreens, CVS, Kroger, and Walmart Canada.
In addition to North America, Lee underscored the importance of other markets such as Japan, South East Asia, and Europe, the Middle East, and Africa.
In these markets, the plan is to figure out which of its brands have potential and accelerate their expansion online and offline.
For instance, in Japan, LG H&H will focus efforts on CNP and its colour cosmetics brand Hince.
Additionally, it also sees potential to boost its presence in the oral care market in Japan. The firm’s oral care portfolio includes brands such as Perioe and Euthymol.
Lee was brief on China, noted that it will continue solidifying The Whoo after its major rebrand last year.
Fast-tracking product R&D
Lee’s message highlighted the importance of product innovation and said the firm would work to enable rapid product development.
“We will plan products that fit the rapidly changing customer trends and innovate the R&D process… We will introduce an R&D fast-track that can quickly commercialise products by utilising a system that analyses customer and technology trends based on digital data.”
She continued: “We will be recognised by customers as a company with the best quality capabilities that are faster than global competitors and more reliable than indie brands by innovating the R&D process and strengthening external collaboration.”
Lastly, Lee emphasised the need for inorganic growth, led by mergers and acquisitions
“We plan to actively pursue brand M&A based on MZ and Alpha generation customers…We will strengthen the substance of businesses with insufficient future growth potential and profit contribution through intensive efficiency improvement.”
