07.30.07
17. LG Household & Healthcare
Korea
www.lgcare.com
Sales: $1.1 billion
Sales:
$1.1 billion. Net income: $56 million.Key Personnel:
Suk Cha, chief executive officer.Major Products:
Household—laundry and dishwash detergents, fabric softener, kitchen cleaners. Personal care—toothpaste, shampoo, soap, baby care, color cosmetics and men’s toiletries.
New Products:
Ohui The First and Whoo Jinyul cosmetics.
Comments:
Sales rose 6.7%, but operating profit jumped 34.3%. The company credits the gains in part to restructuring efforts that started in 2005. Those efforts included a reduction in inventories and discounts and an increased share of high-end products. Along those lines, the company focused its efforts on high-end cosmetic brands such as Ohui, Whoo and SooRyeHan. This year, LG expects sales to grow 10% and operating profit to soar 25%. To reach these lofty goals, the company continues to emphasize its premium-priced brands and will introduce more environmentally-friendly household cleaning products. In the cosmetics sector, LG plans to enhance its competitiveness in markets targeting women 40 and older. Furthermore, LG hopes to secure a leading position in non-irritation/highly functional cosmetics by launching fermented cosmetics for the first time in Korea.The plan seems to be working. LG announced record sales and operating profits in the first quarter. Household product sales rose 7.7% and cosmetics sales were up 23.1%.