Sales: $1.26 billion
Suk Cha, chief executive officer.
Household—laundry and dishwasher detergent, fabric softener, kitchen cleaners. Personal care—toothpaste, shampoo, soap, baby care, skin care, color cosmetics and toiletries.
su:m 37 fermented cosmetics, Borrowing Earth household products.
Comments:Sales rose 13.5% due to continued growth of high margin premium brands. Household product sales rose 8.9% and operating profit rose 21.9%. LG attributed the results to continued growth of new brands and renewals of existing brands.
LG said it continues to shift focus away from price-based competition to premium products. It has had success with Beyond, a high-premium household brand, which saw a 76% sales gain stemming from new product launches and a rapid increase in the number of stores where it is stocked.
The company has recently added Borrowing Earth, a line of environmentally-friendly natural household products that minimize the use of artificial chemical substances in the formulation and packaging. The six product line includes toothpaste, soap, liquid laundry detergent, dishwashing detergent and a fabric softener. The company will add kitchen and bathroom cleaners as well as hair care and body care products.
LG’s cosmetics business reported a 23.8% sales increase. According to LG, growth continues to come from premium cosmetics, such as its new naturally fermented brand called su:m 37. Su:m refers to the skin’s respiration, while “37” represents the optimal temperature for fermentation, according to the company. Launched in select department stores in October, LG plans to expand distribution throughout 2008.