Sales: $2.4 billion
Key Personnel: Suk Cha, vice chairman and chief executive officer; Keon O Kim, chief financial officer.
Major Products: Household—laundry and dishwashing detergents, fabric softener and kitchen cleaners. Personal care—toothpaste, shampoo, soap, baby care, skin care, color cosmetics and toiletries.
New Products: Davi cosmetics; Everlife cosmetics (acquisition).
Comments: The bulk of LG’s corporate sales (70%) come from household and personal care products, but the company is also a major player in the beverage category, marketing Coca-Cola and other products.
In 2012, sales of detergents, shampoos, toothpaste and similar household staples rose 6% to more than $1.1 billion—not bad, but LG’s cosmetics sales soared 20% to more than $2.4 billion.
Korea accounts for more than 85% of LG’s corporate sales, but the company has a growing presence in Asia. For example, sales in China jumped nearly 62% last year to $128 million. Sales gains were even more impressive in the rest of Asia, as sales soared 150% to nearly $195 million.
To grow even faster, CEO Suk Cha said LG has a four-point strategy that includes:
- Diversifying approaches to grab the No. 1 spot in the Korean cosmetics market;
- Creating new categories in the household care segment;
- Maximizing the synergies between Coca-Cola and Haitai beverages to become the No. 1 player in the beverage market; and
- Executing solid business plans at the global level.