LG Household & Healthcare, part of the widely diversified LG Group, is South Korea's dominant household and personal care marketer, with leading positions in multiple sectors, even soft drinks. Its biggest business is beauty products, accounting for more than 60% of sales, and over 90% of profits. The group is also the #2 cosmetics company in Korea (behind AmorePacific), mainly in the skincare and cleansing sector. Its top-selling brand is The History of Whoo, with sales topping $1.7bn a year. Another key brand is Su:m skincare, an especially strong seller in China. Other brands include O Hui, Belif, Isa Knox and LacVert, all for women, and men's cosmetics brands Sooryehan and Vonin. In 2009, the group acquired leading cosmetics retailer TheFaceShop. Personal and housecare products include a wide range of oral care, cleansing and haircare products as well as laundry detergents, airfresheners and surface cleaners. Key brands are ON: The Body wash products, Elastine shampoo, Bamboo Salt toothpaste, Tech laundry detergent, Saffron fabric softeners and Jayeonpong dish detergent. It established a presence in the baby and feminine care sectors in 2008 with an alliance with Japanese manufacturer UniCharm to market diapers and sanitary protection products in China and Korea. In 2016, LG H&H acquired regional rights in Asia Pacific to the Reach oral care brand from Johnson & Johnson. In a slightly surprising development, LGHH acquired the local Coca-Cola license for South Korea in 2007, with rights to the full Coke sparkling and still beverage portfolio including Georgia canned coffee, Minute Maid juice and others. In 2010 it added Haitai Beverage, bolstering its position as the local #2 in soft drinks behind market leader Lotte Chilsung. Other drinks brands include Sunkist and ViO Diamond bottled water. Suk Cha is group CEO. Combined revenues were approx $60.2bn in 2018. Although it currently operates primarily in its domestic market, LGHH has operations in several other territories in Asia. In 2019, in its biggest push to-date into Western markets, it announced plans to acquire US-based beauty direct seller New Avon, the local licensee of the global Avon brand, for $125m.
Capsule checked 24th April 2019
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Adbrands Daily Update 26th Apr 2019: In a dramatic expansion of its international footprint, LG Household & Healthcare - a sister company to LG Electronics - announced a deal to acquire New Avon, the struggling US licensee of the global Avon business. The stated price tag was $125m, representing a loss for private equity owner Cerberus, which paid $170m for the business three years ago. LGH&H is South Korea's second largest beauty and personal care business. Though it sells small quantities of its leading products in North America, the vast majority of revenues are generated in Asia, primarily in the domestic market. This push into North America - where Avon manages a network of some 250,000 sales representatives - marks a major escalation in its global ambitions. The company will continue to license the Avon brand from its owner Avon Products, now headquartered in the UK. New Avon had previously been in negotations with Natura of Brazil, but these talks appear to have ended.
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