Lee Jung-ae, president of LG Household & Health Care, emphasized on 2nd that "let's make this year a testament to LG Household & Health Care's capabilities through the passion for developing more competitive top-notch products and the immersion in creating differentiated future value" in her New Year's address for 2025.
She noted, "If we quickly channel our concentrated capabilities into innovation of customer value centered on products, we can emerge as a company that creates the best business results leading the market and customers."
She announced that she will focus on restructuring the global business (rebalancing) as a key business strategy this year. Specifically, she mentioned, "In the North American market, I will enhance products that can appeal to Young Generation customers around the belief, CNP, and The Face Shop brands and focus on marketing investments."
She particularly emphasized, "I will accelerate the quantum leap in online channels centered on Amazon and expand the base in offline channels." Previously, LG Household & Health Care confirmed its success potential as The Face Shop's Miga Line and CNP Lip Serum performed well in Amazon, the largest online shopping mall in North America, last year.
Additionally, in Japan, a beauty powerhouse, she outlined plans to expand online influence centered on well-known oral care and color brands, Hince and CNP dermatological cosmetics while focusing on the expansion of both online and offline channels tailored to local characteristics in Southeast Asia and the Europe, Middle East, and Africa (EMEA) markets. In China, while solidifying the results of rebranding its flagship brand, The History of Whoo, she stated, "I will focus on growth based on revenue."
She decided to promote process innovation that allows for swift progression from product planning to research and development (R&D) and product launch. She said, "I will plan products that cater to swiftly changing customer trends and innovate the R&D process," adding, "I will introduce an R&D fast track that can swiftly materialize based on digital data to analyze customer and technology trends."
She urged, "Let's expand the product pool in response to global trend changes and actively utilize open innovation to quickly and flexibly supplement the capabilities needed for the business," adding, "With innovation in the R&D process and strengthening external collaborations, let's be recognized by customers as a company that holds the best quality capabilities faster than global competitors and more reliably than indie brands."
As a means for digital-led growth, she proposed targeting both domestic and international e-commerce markets, enhancing digital content planning and development capabilities, and actively utilizing artificial intelligence (AI). She said, "I will comprehensively enhance digital commerce and marketing capabilities by actively utilizing AI," and added, "By collaborating with external digital solution corporations, I will develop converged products to provide differentiated customer experiences."
Moreover, she emphasized the necessity of inorganic growth led by mergers and acquisitions (M&A). She noted, "I plan to actively pursue brand M&A based on MZ and Generation Alpha customers," and stated, "For businesses with insufficient future growth potential and revenue contribution, I will strengthen the business's foundations with intensive efficiency measures."