Sales: $1.2 billion
Suk Cha, president and chief executive officer; Kyoo II Lee, chief financial officer
Household—laundry and dishwashing detergent, fabric softener and kitchen cleaners. Personal care—toothpaste, shampoo, soap, baby care, skin care, color cosmetics and toiletries
The Face Shop (acquisition), O Hui and Isa Knox Te’rvina biotech beauty products, Beyond body care products
Sales rose nearly 13% last year for Korea’s No. 2 cosmetics maker (behind Amore Pacific). The big news at LG during the past year was the acquisition of The Face Shop, Korea’s No. 3 cosmetics maker for about $300 million. At the time of the acquisition, The Face Shop had annual sales of about $215 million. The move gives LG entry into the lower priced portion of the market.
According to LG, the acquisition puts it on par with Amore Pacific in the Korean cosmetics market. Moreover, the deal gives LG an opportunity to reach a new consumer base, women in their teens and early twenties. This year, LG expects sales to increase 10% on the strength of The Face Shop acquisition.
In January, LG rolled out new anti-aging skin care products, co-developed by CHA Bio & Diostech, a research affiliate of the CHA Medical Group. The new products include O Hui The First series, which contain a recombinant human stem cell protein (rHSCP), and Isa Knox Te’rvina, which contains the recombinant human placenta protein (rHPP-8TM). LG is the first Korean company to have access to CHA Bio & Diostech’s proprietary skin rejuvenation technologies for developing skin care products.
“Conventional stem cell cosmetics merely activate skin cells while O Hui The First is a revolutionary product made by reorganizing the key elements of embryonic stem-cell culture fluid which Cha Stem Cell Institute (CSCI) found to have extraordinary skin revitalizing effects,” said Chung, Hyung Min, PhD, researcher of CSCI.
Meanwhile the Cha Placenta Institute analyzed key functions and viable ingredients of the human placenta, recombined key agents of the placenta, and applied the new components into Isa Knox Te’rvina.
LG got off to a fast start in 2010, as first quarter sales jumped nearly 24% to more than $600 million and operating profit soared almost 40%. Household product sales rose 14% to nearly $250 million and cosmetics sales soared 44% to more than $230 million.