LG Household & Health Care

Last updated

LG H&H Co., Ltd.
LG Household & Health Care
Native name
주식회사 LG생활건강
Romanized name
Jusikhoesa LG (El-Ji) Saenghwalgeongang
FormerlyLG Household & Health Care
Company type Public
KRX: 051900
Industry Consumer goods
Predecessor LG Chem
FoundedApril 2001;23 years ago (2001-04)
Headquarters Seoul, South Korea
Area served
Worldwide
Key people
Suk Y. Cha (vice chairman and CEO)
Products
  • Cosmetics
  • Household Goods
  • Beverages
Revenue KRW 4,677 billion (2014) [1]
KRW 511 billion (2014) [1]
KRW 355 billion (2014) [1]
Total assets KRW 3,828 billion (2014) [1]
Total equity KRW 1,709 billion (2014) [1]
Owner LG Corporation (34%)
Number of employees
9,566 (2014) [1]
Subsidiaries The Face Shop
Website lgcare.com/global

LG H&H Co., Ltd., formerly LG Household & Health Care, is a major South Korean consumer goods company that manages cosmetics, household goods, and beverages business. It is also the South Korean bottler of the Coca-Cola system.

Contents

Summary

History

Founded in 1947, Koo In-Hwoi (Founder of LG Corp) established Lucky Chemical Industrial Corp, and launched "Lucky Cream," the very first cosmetics product in Korea. In 1954, the company also launched Korea's first toothpaste brand, 'Lucky Toothpaste'. In February 1995, the company changed its name to LG Chemical Ltd. In April 2001, LG Household & Health Care spun off from LG Chemical, and was listed on the Korean Stock Exchange. [2] Since current CEO & Vice Chairman, Suk Y. Cha joined the company in 2005, the business made a successful turnaround, and the company's growth was further driven by strategic M&As. [3] Currently, LG Household & Health Care is expanding its cosmetics and personal care business into global market. [4]

M&A

When LG Household & Health Care was established, there were only two business divisions of cosmetics and household goods. With the acquisition of Coca-Cola Beverage (former Coca-Cola Korea Bottling Co., Ltd) in 2007, the company completed its current business structure of cosmetics, household goods, and beverages. Currently, LG Household & Health Care is an exclusive manufacturer and distributor of Coca-Cola brand products in South Korea. [5] In 2009, the company acquired Diamond Water Co., Ltd to strengthen its drinking water business, and in 2011, the company acquired Haitai Beverage Co., Ltd, the third largest beverages company in Korea at the time. [6]

Since 2005, cosmetics business made a successful turnaround through new high-end brand launches including 'The History of Whoo', 'SU:M37', and 'belif'. In 2010, the company acquired low-end cosmetics brandshop, 'The Face Shop', and a complete cosmetics product portfolio consisting of high-end, mid-end, to low-end was achieved. [7] In 2012, LG Household & Health Care acquired cosmetics brand, 'Violet Dream' (former VOV) to strengthen its color cosmetics business. [8] In 2014, the company acquired local cosmeceutical firm, CNP Cosmetics Co., Ltd, in order to expand into newly growing cosmeceutical category. [9]

Business Division

Cosmetics

LG Household & Health Care is the second largest cosmetics company in South Korea, and it has continued to narrow the gap with its competitor. [10] Its major high-end cosmetics brands include 'The History of Whoo', 'O Hui', 'SU:M37', and 'belif'. [11] The high-end cosmetics business is growing fast with 'The History of Whoo' recording the highest sales among all other brands in major duty-free stores in Korea. [12] The major brands in mid-to-low end cosmetics include 'ISA KNOX', 'Sooryehan', 'BEYOND', and 'THEFACESHOP', the number one brandshop in Korea. [13]

Household Goods

LG Household & Health Care has maintained a dominant number one position in Korean household goods industry, and still continues to increase its market share through product differentiation, and category expansion. [12] The major business units are personal care and home care. Personal care includes oral care, hair care, and body care, while home care includes dishwashing detergent, laundry detergent, and fabric softener. The major brands are 'Perioe'·'Bamboo Salt'(oral care), 'Elastine'·'Reen'(hair care), 'ON: THE BODY'(body care), 'TECH'(laundry detergent), 'Jayeonpong'(dishwashing detergent), and 'Saffron'(fabric softner). [14]

Beverages

Beverages business division was established through the M&A of Coca-Cola Beverage (former Coca-Cola Korea Bottling Co., Ltd) in 2007, and is currently the second largest beverage company in South Korea. [15] The major brands are 'Coca-Cola', 'Fanta', 'Sprite', 'Minute Maid', 'Sunkist', 'Georgia', and 'POWERADE'. [16]

Related Research Articles

<span class="mw-page-title-main">Colgate-Palmolive</span> American multinational consumer products company

The Colgate-Palmolive Company, commonly known as Colgate-Palmolive, is an American multinational consumer products company headquartered on Park Avenue in Midtown Manhattan, New York City. The company specializes in the production, distribution, and provision of household, health care, personal care, and veterinary products.

<span class="mw-page-title-main">Lotte Chilsung</span> South Korean beverage manufacturer

Lotte Chilsung Beverage Co., Ltd. is a drink manufacturer in South Korea affiliated with Lotte Corporation. The company's name, Chilsung, signifies "Big Dipper" or seven stars, and its logo displays seven stars aligned in a row.

<span class="mw-page-title-main">SABMiller</span> Multinational brewing and beverage company

SABMiller plc was a South African multinational brewing and beverage company headquartered in Woking, England on the outskirts of London until 10 October 2016 when it was acquired by AB InBev for US$107-billion. It was the world's second-largest brewer measured by revenues and was also a major bottler of Coca-Cola. Its brands included Foster's, Miller, and Pilsner Urquell. It operated in 80 countries worldwide and in 2009 sold around 21 billion litres of beverages. Since 10 October 2016, SABMiller is a business division of AB InBev, a Belgian multinational corporation with headquarters in Leuven.

<span class="mw-page-title-main">Church & Dwight</span> American consumer goods company

Church & Dwight Co., Inc. is an American consumer goods company focusing on personal care, household products, and specialty products. The company was founded in 1847 and is headquartered in Ewing, New Jersey. It is the parent company of well-known brands such as Arm & Hammer, Trojan, OxiClean, and First Response. In 2022, Church & Dwight reported annual revenue of $5.4 billion. The company's products and services include a wide range of consumer goods, including laundry detergent, air fresheners, baking soda, condoms, pregnancy tests, and oral hygiene products.

<span class="mw-page-title-main">The Coca-Cola Company</span> American multinational beverage corporation

The Coca-Cola Company is an American multinational corporation founded in 1892. It manufactures, sells and markets soft drinks including Coca-Cola, other non-alcoholic beverage concentrates and syrups, and alcoholic beverages. Its stock is listed on the New York Stock Exchange and is a component of the DJIA and the S&P 500 and S&P 100 indexes.

Coca-Cola HBC AG also known as Coca-Cola Hellenic Bottling Company or just Coca-Cola Hellenic is the world's third-largest Coca-Cola anchor bottler in terms of volume with sales of more than 2 billion unit cases. Coca-Cola HBC's shares are primarily listed on the London Stock Exchange with a secondary listing on the Athens Stock Exchange. The company is a constituent of the FTSE 100 Index. Coca-Cola HBC has been named the industry leader among beverage companies in the 2014 Dow Jones Sustainability Index and is also included in the FTSE4Good Index.

<span class="mw-page-title-main">Fast-moving consumer goods</span> Products that are sold quickly and at a relatively low cost

Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG) or convenience goods, are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables.

<span class="mw-page-title-main">Henkel</span> German consumer goods company

Henkel AG & Co. KGaA, commonly known as Henkel, is a German multinational chemical and consumer goods company headquartered in Düsseldorf, Germany. Founded in 1876, the DAX company is organized into two globally operating business units and is known for brands such as Loctite, Persil, Fa, Pritt, Dial and Purex.

<span class="mw-page-title-main">Ajax (cleaning product)</span> Brand of cleaning products

Ajax is an American brand of household cleaning products and detergents made by Colgate-Palmolive and Awesome Products Inc.

Lilleborg AS is a major hygiene and cleaning article company in Norway, owned by the Orkla Group. It was established in 1833, and was one of the first companies in Norway to start manufacturing brand name products. It currently operates three factories in Norway, and employs a total working staff of 595.

<span class="mw-page-title-main">Campa Cola</span> Soft drink brand in India

Campa Cola is a soft drink brand in India. It was a market leader in the Indian soft drink market in the 1970s and 1980s in most regions of India until the advent of the foreign players Pepsi and Coca-Cola after the liberalisation policy of the P. V. Narasimha Rao government in 1991.

Stepan Company is a manufacturer of specialty chemicals headquartered in Northbrook, Illinois. The company was founded in 1932 by Alfred C. Stepan, Jr., and has approximately 2,000 employees. It is currently run by his grandson, F. Quinn Stepan, Jr. The company describes itself as the largest global merchant manufacturer of anionic surfactants, which are used to enhance the foaming and cleaning capabilities of detergents, shampoos, toothpastes, and cosmetics.

<span class="mw-page-title-main">The Face Shop</span> South Korean cosmetics company

The Face Shop (Korean: 더페이스샵) is a South Korea–based skincare and cosmetics manufacturer, retailer and a franchise business. It is a subsidiary of LG Household & Health Care of LG Corporation. Its products includes body, bath, skin care and make-up aimed at both women and men. Its headquarters is in the LG Gwanghwamun Building in Jongno-gu, Seoul.

Zico is a brand of coconut water and other drinks containing coconut water. The drinks are produced by Zico Rising, originally founded as Zico Beverages in 2004.

Coca-Cola Beverages Africa is a company that was formed in 2014 from the merger of SABMiller plc, The Coca-Cola Company and Gutsche Family Investments beverage bottling operations in Southern and East Africa.

<span class="mw-page-title-main">LG</span> South Korean conglomerate corporation

LG Corporation, formerly known as Lucky-Goldstar, is a South Korean multinational conglomerate founded by Koo In-hwoi and managed by successive generations of his family. It is the fourth-largest chaebol in South Korea. Its headquarters are in the LG Twin Towers building in Yeouido-dong, Yeongdeungpo District, Seoul. LG makes electronics, chemicals, household appliances, and telecommunications products and operates subsidiaries such as LG Electronics, Zenith, LG Display, LG Uplus, LG Innotek, LG Chem, and LG Energy Solution in over 80 countries.

<span class="mw-page-title-main">Olive Young (company)</span> Korean health and beauty retailer

CJ Olive Young Corporation is a health and beauty product store based in South Korea. Olive Young opened its first store in Sinsa-dong, Gangnam in December 1999 under the management of CJ Systems and pioneered Korea's health and beauty market. Olive Young's main slogan is "All live young with Olive Young." which reflects the main philosophy 'Natural Healthy' of Olive Young. In 2021, Olive Young is solidifying its No.1 position in the Korean H&B market, which was hit directly by Covid-19.

References

  1. 1 2 3 4 5 6 "LG Household & Health Care 2014 Auditor's report". LG Household & Health Care. Retrieved November 18, 2014.
  2. "LG Household & Health Care: Leading the Way in Cosmetics". Archived from the original on November 19, 2015. Retrieved November 18, 2015.
  3. Cha’s success reveals secret of CEO longevity
  4. LG’s cosmetics unit bets big on Chinese market
  5. Acquisition of CCKBC Finalized
  6. LG HH Announces Takeover of Haitai Beverage
  7. LG H&H Takes over Korea's No. 3 Cosmetics Brand
  8. LG H&H Concludes an Agreement to Acquire VOV
  9. LG Household to acquire local cosmeceuticals maker CNP Cosmetics
  10. Cosmetics vs. creative economy
  11. LG Household & Health Care official site
  12. 1 2 LG H&H reports net sales of 1.3 trillion won, and operating profit of 178 billion won for 1Q 2015
  13. Missha announces domestic downsizing, global expansion
  14. LG Household & Health Care official site
  15. LG Household to Buy Coca-Cola Amatil's Korean Unit (Update3)
  16. LG Household & Health Care official site