LG Electronics Inc. revealed on Tuesday, Feb. 28, that it has jumped into the cosmetics business. The South Korean electronics firm said this will be its new business category and will be officially announced on March 27 at the upcoming regular shareholders’ meetings.
As per The Korea Times, LG Electronics is aiming to boost its synergy and cosmetics sales with Pra.L, the beauty device brand of the company. It is also planning to sell cosmetic products that can be used along with its array of beauty and medical devices.
“The addition of the cosmetics sales business reflects the recent market trend in which products combine beauty and medical devices with cosmetics, and is aimed at broadening customer experiences,” an official of LG Electronics said in a statement.
Then again, while LG Electronics is determined to expand in this industry, there are concerns about this business expansion as it may overlap with its LG Household & Health Care subsidiary. Although LG H&H is mainly focusing on household goods and cosmetics, business experts could not help but be worried since there are similarities in their products.
“The company is expected to create synergy in cosmetics sales and collaborative sales with LG H&H and in-house brands including Pra.L,” a business insider who has knowledge of the matter said in another interview regarding LG’s cosmetics business plans. “Rather than a competitive structure, there is a possibility of collaboration between the two subsidiaries.”
Pulse News reported that LG Electronics is expanding to this side of the industry for business diversification. With the new venture, the company will start offering more services where customers can easily purchase skincare products and beauty devices.
Meanwhile, LG Electronics has been seeking new strategies as it expands its beauty business to include cosmetics in the post-COVID era. It has been selling devices for skincare, and this time, the company will add beauty products to its line LG is hoping this will yield good results as one of its new growth drivers.