[Edaily Reporter SHIN MIN JOON ] LG H&H(051900)is acquiring the remaining shares of Viva Wave, the operator of the color cosmetics brand HINS, to make it a wholly-owned subsidiary. This move is seen as a strategic effort to create a new breakthrough by nurturing an indie brand with proven growth potential, as the company’s core cosmetics business faces difficulties due to declining sales and deteriorating profitability in China.

According to the retail industry on the 11th, LG H&H acquired the remaining 25% stake held by Heo Jae-seok, CEO of VivaWave, for approximately 15.4 billion won on the 10th. With this transaction, LG H&H’s stake in VivaWave has increased from 75% to 100%.

The fact that LG H&H has made Viva Wave a wholly-owned subsidiary is a clear indication of the high expectations it has for the color cosmetics brand HINCE. Since transferring management control to LG H&H in 2023, Viva Wave has grown both its revenue and profitability.

VivaWave’s revenue last year reached 61.5 billion won, a 36.1% increase from the previous year’s 45.2 billion won. During the same period, operating profit rose 153.2% from 1.8 billion won to 4.7 billion won, and the operating profit margin increased from 4.1% to 7.6%. Compared to the approximately 21.8 billion won in revenue recorded in 2022—prior to the acquisition—the company’s revenue has nearly tripled in just three years.

Hins is a color cosmetics brand launched in 2019. By incorporating natural colors and stylish designs into products such as foundation, lip products, and highlighters, Hins has secured a consumer base both domestically and internationally. In particular, Hins entered the Japanese market early on and established a strong online and offline presence there.

In 2022, before LG H&H acquired management control, half of Hince’s revenue came from overseas, with the majority of that coming from Japan. Since entering the Japanese online market in 2019, Hince has built brand awareness by operating company-owned stores and pop-up shops in department stores.

Hins recently expanded its sales reach in the North American market by simultaneously launching its products in over 400 physical stores and online channels of Ulta Beauty, a leading U.S. beauty retailer. LG H&H will analyze consumer feedback and sales data collected through local channels, such as Ulta Beauty, to refine its product lineup.

Given the diversity of ethnicities, skin tones, and makeup preferences in North America, the extent to which the brand reflects local consumer demand is expected to be a key factor in its market success. LG H&H plans to enhance product competitiveness by combining the headquarters’ research and development (R&D) capabilities with Hince’s product planning expertise.

LG H&H is also pursuing Hince’s entry into Shinhung markets such as Latin America and India. The company is closely monitoring market potential and consumer response to explore a phased entry strategy. LG H&H plans to maintain Hince’s brand autonomy while leveraging LG Corp.’s global business capabilities. The plan is to respect Hince’s unique product planning and marketing direction while providing support for key distribution network partnerships, regulatory approvals, and logistics supply chains during the overseas expansion process.

LG H&H will also refine its product lineup based on consumer feedback and sales data gathered in the North American market. By combining LG H&H’s research and development (R&D) capabilities with HINS’s planning expertise, the company aims to cater to a diverse range of skin tones and makeup preferences.

The growth of Hince is also part of an effort to diversify the beauty business, which had been heavily concentrated in China. LG H&H’s third-quarter sales in China totaled 115.1 billion won, a 21.1% decrease from the same period last year. The company explained that the decline in sales was due to the restructuring of its online business operations in China. During the same period, the beauty division posted sales of 660.8 billion won and an operating loss of 10.9 billion won. Although the loss narrowed compared to the same period last year, the division returned to a loss after posting an operating profit of 44.4 billion won in the second quarter of this year.

An LG H&H official stated, “By securing a 100% stake in HINS, we have gained the momentum to drive our global business more swiftly and consistently,” adding, “We will support the expansion of our overseas business by combining our global distribution network, regulatory approvals, and logistics capabilities while respecting HINS’ unique brand identity and product planning.”