President Lee Seon-ju of LG H&H said, "It is an era in which how swiftly we respond to change has become the key to survival and growth," adding, "To survive, we must transform into an organization that quickly adapts to and leads change."
In a New Year's address on Jan. 5, Lee stated accordingly, citing British biologist Charles Darwin's theory of evolution that "it is not the strongest or the smartest that survive, but those that respond best to change." Lee was officially appointed president in Oct. last year. This is the first time Lee has publicly outlined management strategy.
Lee said, "If the K-beauty market in the past was a time when a few big ships led the entire market, now countless small yachts are sailing swiftly and nimbly toward their own goals, delivering results," explaining, "This is possible because shifts in frame and direction have been flexible."
Lee continued, "Beyond simply selling products, we must be reborn as an innovative lifestyle partner that creates differentiated customer value, as a 'Science-Driven Beauty & Wellness Company,'" emphasizing, "LG H&H's aim is to create differentiated beauty through our research and development (R&D) capabilities and infrastructure, and to generate value for customers' healthy lives."
To that end, Lee presented four core tasks: ▲ retooling the brand portfolio ▲ innovating the customer experience ▲ focusing on fostering high-growth regions ▲ readjusting the profitability structure.
Lee said, "We must reorganize around brands and, through concentrated investment in high-growth brands, be reborn as consumer-centered corporations," adding, "We will internalize key functions within brand organizations and focus on Brand Transformation and High-Growth Brand Acceleration."
Earlier, LG H&H reorganized in Dec. last year, restructuring the existing Beauty Division and HDB (home care & daily beauty) Division into five organizations: Luxury Beauty, Derma & Contemporary Beauty, Cross-Category Beauty, Neo Beauty, and HDB. A notable change was the creation of the Neo Beauty division, which operates "Dr. Groot" and "U:zimall" as core brands previously under the HDB Division.
Lee explained, "We will develop Dr. Groot and U:zimall into high-tech beauty health care and operate them separately under the Neo Beauty division to build them into global future growth platforms."
Lee said, "We must further strengthen market trend and technology intelligence capabilities to create products and content that deliver a 'Wow Experience' to customers," adding, "Through region-focused overseas strategies, we must drill into each country's leading commerce channels and continuously expand the digital share." Lee continued, "Rather than expanding assortments, we will focus on developing and marketing impactful hero products to secure high-profit hero products and improve the revenue structure."
Lee presented "FACE" as the talent profile to successfully carry out these tasks, calling for flexibility of thought (Flexibility), autonomy (Autonomy), clear and fast communication (Communication), and enthusiasm for work (Enthusiasm).
Lee said, "The waves of change are coming fast and rough, and we can no longer hesitate or delay," adding, "Let's trust in our inner strength and move forward vigorously for change."