Chief Operating Officer Cha Seok-yong's Critical Order: "Respond with a Dedicated Naver Team" Online

Establishing a Dedicated Naver Team... LG Household & Health Care's Commitment to Building a 'Direct Mall'
Launching a Smart Store Exclusive Brand... Developing It as a Leading Online Brand

Cha Seok-yong, Vice Chairman of LG Household & Health Care

[Asia Economy Reporter Lee Seon-ae] LG Household & Health Care has established a 'Naver Dedicated Team' directly under Vice Chairman Cha Seok-yong. This new team was created separately from the existing online organization. This move is interpreted as a strategic effort to strengthen collaboration with Naver, which is leading the market through 'Smart Store' and 'Live Commerce,' amid a sharp decline in offline store sales, including duty-free shops, and a rapid expansion of the online market following the COVID-19 pandemic.

Cha Seok-yong: "Take charge of Naver"

On the 22nd, it was confirmed that LG Household & Health Care established and is operating a 'Naver Dedicated Team' consisting of one team leader and three team members under the direction of Vice Chairman Cha Seok-yong. This was created with the purpose of systematically and efficiently managing LG Household & Health Care's 'Brand Store' and 'Smart Store' on Naver, in order to secure competitiveness in the non-face-to-face (untact) environment as Naver Shopping's influence grows.

An internal source at LG Household & Health Care explained, "The Naver Dedicated Team is organized separately from the existing online organization and operates directly under Vice Chairman Cha. Given that Vice Chairman Cha has repeatedly expressed his intention to expand the online business, the establishment of a dedicated team is seen as a move to enhance strategic collaboration with Naver, a dominant platform player."

Naver is already considered an e-commerce giant operating 'Smart Store,' which hosts an average of 33,000 small business stores monthly, and 'Live Commerce,' leveraging platform competitiveness. Furthermore, in February this year, Naver launched 'Brand Store.' Unlike other e-commerce platforms where various distribution channels including wholesalers are mixed, the Brand Store is operated directly by the brand itself, resembling an offline department store, which the industry refers to as the 'Naver Department Store.'

Many famous brands have lined up to enter, and LG Household & Health Care also established its presence early on. In the Brand Store, the brand itself has the authority to redesign and operate the page and set prices. It operates almost like a 'direct store' while benefiting from consumer inflow through search and promotional effects via the portal site. The Naver Dedicated Team is focusing on utilizing this channel for various LG Household & Health Care products, from daily necessities to cosmetics. Especially for cosmetics, where product trust is essential, the Brand Store can be an excellent channel. Vice Chairman Cha is determined to build a perfect LG Household & Health Care direct store on Naver and aims to maximize sales through this.

Captured page of LG Household & Health Care store on Naver Brand Store.

Targeting the MZ Generation, Online-Only Brand Launched

LG Household & Health Care continues to push efforts to expand its online business. Recently, it launched a new online-only makeup brand, 'Glint by Vidivici.' This targets the MZ generation (Millennials + Generation Z, born 1980?2004), who are familiar with digital environments and visual communication, to strengthen its online cosmetics segment. 'Glint by Vidivici' is sold through Naver Smart Store. Through continuous collaboration with Naver, including influencer viral marketing, search ads, and live broadcasts, LG Household & Health Care plans to develop it into a leading online color cosmetics brand.

As a solution to conflicts with franchise stores arising from online business expansion, LG Household & Health Care introduced a direct online shopping mall. In June last year, it suspended product sales services on the online shopping mall to boost franchise store sales, and in July this year, it launched direct online shopping malls for Nature Collection and The Face Shop, restructured to allow franchise stores to earn profits. Sales and profits generated from product sales on the newly established malls are attributed to the franchise stores designated by buyers through the 'My Store' service. Franchise stores designated as My Store handle orders by sending in-store inventory via courier or requesting consignment delivery to the franchise headquarters.

Regarding this, Vice Chairman Cha emphasized, "As the market environment rapidly shifts to online, making it difficult for franchise stores operating road shops to sustain their business, we have provided a platform that allows franchise stores to expand their business areas not only offline but also online."

This content was produced with the assistance of AI translation services.