President Lee and His Wife’s Favorite Item Was Also from Here... Sunjoo Lee’s “Post-LG H&H” Gamble

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Product-Centered Viral Strategy
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LG Household & Health Care is aiming for a turnaround in performance by implementing its "post-LG H&H" strategy. While K-beauty continues to thrive, premium brands have been struggling, prompting the company to experiment with new approaches to brand exposure. There is growing attention on whether the new leadership of CEO Sunjoo Lee can lead LG Household & Health Care to a rebound in performance.

According to FnGuide on April 24, the consensus for LG Household & Health Care’s first-quarter 2026 earnings stands at 1.5903 trillion won in revenue and 51.2 billion won in operating profit, which is expected to meet market expectations. Compared to the same period last year, revenue and operating profit are down by 6.3% and 64%, respectively. However, compared to the previous quarter, revenue is expected to grow by 8%, with operating profit returning to a surplus.

The optimism surrounding LG Household & Health Care’s turnaround is largely driven by the strong performance of individual brands. In North America, the hair care brand Dr.Groot gained momentum after surpassing 100 million views on TikTok in the second half of last year. Dr.Groot’s annual revenue is around 80 billion won, with approximately 30 billion won generated in North America alone. The rebound that began in the latter half of last year is expected to be further boosted by the brand’s entry into Sephora, potentially pushing North American sales beyond 60 billion won. Additionally, brands such as Belif and CNP are expanding from Amazon’s online platform to offline channels in the United States, securing new placements at Ulta Beauty, which is expected to yield meaningful results.

This aligns with LG Household & Health Care’s so-called “post-LG H&H” strategy, which focuses on marketing individual product strengths and content rather than the overarching brand—an approach increasingly resonating with consumers both domestically and internationally.

A leading example is “The Face Shop Softly Soft Scrub,” which recently gained attention online. While the product made headlines following the purchase by President Lee Jae-myung and his spouse, among consumers, word-of-mouth and personal product experiences spread more than the association with LG Household & Health Care itself. The vegan makeup brand Freshian is also gaining recognition in Japan and through Olive Young in Korea, again expanding consumer touchpoints without emphasizing its LG Household & Health Care affiliation. This strategy, which positions the brands more like indie labels, is seen as an effort to attract Millennials & Gen Z consumers.

President Lee Jae-myung and his spouse made headlines by purchasing the 'LG Household & Health Care The Face Shop Softly Soft Scrub'. LG Household & Health Care

An LG Household & Health Care official said, “For some brands, we deliberately focus on the product and intentionally hide the LG Household & Health Care name in our marketing.”

Industry analysts interpret this as an attempt by LG Household & Health Care to move away from its traditional premium and herbal-centric image, epitomized by The History of Whoo. In the past, a brand power-driven strategy was effective, but recently, the competitiveness of individual products, engaging content, and viral marketing have emerged as more important marketing methods.

Signs of change are also evident within the company. CEO Sunjoo Lee, who took office at the end of last year and has a background at L'Oréal, is reportedly taking a more aggressive approach, leveraging her global network to promote entry into overseas beauty channels. The industry notes that decision-making has become faster and experimental initiatives have increased. An LG Household & Health Care official commented, “Since CEO Lee’s appointment, the internal atmosphere has changed. While brand entry into U.S. channels such as Ulta Beauty was previously managed at the working level, CEO Lee herself is now actively pushing these moves by utilizing her global network.”

However, it remains uncertain whether these strategies will result in a performance rebound. LG Household & Health Care has seen its growth slow in recent years due to sluggish business in China and aging brands, with its stock price plunging to a 15-year low. Its market capitalization has also fallen to around 4 trillion won. Jongdae Park, a researcher at Meritz Securities, noted, “The strong performance of individual brands is encouraging, but the sales scale of brands such as CNP, Belif, and The Face Shop is still too small. In the United States and Japan, sales from in-house brands account for only 30–40% of the total.”

An industry official commented, “The strategy of focusing on products rather than brands aligns with recent consumer trends. However, the key question is whether this can develop into sustainable brand competitiveness beyond short-term viral effects.”

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