The South Korean consumer goods company selected The Face Shop, Belif, and CNP as its three key brands for the North American market.
Its strategy was to lead and grow with key hero products from each brand while developing new products to meet local needs.
“In order to respond to the North American market, the beauty business focused on fostering strategic brands and launched new products exclusively for North America one after another.”
The company also prioritised TikTok and the platform’s beauty influence to enhance its presence in the market.
The Face Shop has made significant strides by expanding its presence in local major retail channels such as Walgreens, CVS, Walmart Canada, and Kroger.
On Amazon, the brand achieved top rankings with its Rice Water Bright series of cleansers, including the Rice Water Bright Foaming Cleanser, Cleansing Oil and Cleansing Facial Wipes.
The brand also launched Alltimate Vegan Mucin Peptide 8 Serum, a vegan alternative to snail mucin serum. The product contained wild yam root, an 8-peptide complex, and glutathione.
The product made an early debut on TikTok shop.
Belif expanded its brand awareness through key hero products such as its longstanding best-seller Aqua Bomb Moisturiser, as well as the Aqua Bomb Eye Gel and Super Drops Glow Serum.
According to the brand, Aqua Bomb Eye Gel top the eye care rankings in Sephora from August to September.
Over the last quarter, over 4,000 digital content posts on the brand were created on TikTok and Instagram.
Meanwhile, the company pushed CNP Laboratory’s Propolis Lipcerin lip butter balm in the market.
The product debuted on Amazon US in May 2024. The product was a success, topping Amazon’s lip butter category for 20 consecutive weeks.
Lipcerin is a proprietary ingredient from LG H&H. It contains glycerine and claims to improve the five major problems of lip skin: dead skin cells, wrinkles, moisture, elasticity, and shine.
The content generated 10 million views on TikTok from influencers Pauline Choi and Dr Zionko.
The success of the product prompted the firm to expand the lip butter range with three new scent including mint, lime, and berry, to target North American consumers.
Third quarter results
According to LG H&H’s third quarter report, its beauty division saw sales decline by 2.9% to KRW650.6bn (USD472m) while operating profit increased by 42.8% to KRW11.4bn (USD8.27m)
The company attributed the sales decline to the sluggishness of the travel retail market.
The operating profit grew thanks to the profitability of its overseas business despite the high marketing costs.
This included North America and China, where The Whoo performed well online.
