THE WHAT? LG Household & Health Care has discontinued its TIPSY colour cosmetics brand as part of its ongoing strategy to streamline its beauty portfolio and concentrate investment on brands with stronger long-term growth potential.
THE DETAILS TIPSY, originally acquired through LG Household & Health Care’s purchase of a majority stake in Roa Korea in 2020, was intended to strengthen the company’s appeal among younger, digitally engaged consumers. However, the brand struggled to gain traction following the pandemic as the colour cosmetics market became increasingly competitive, with social media-driven indie brands capturing market share. After operating TIPSY as an in-house brand, LG Household & Health Care has now ended the business as part of a wider restructuring programme led by CEO Lee Sunjoo. The company is instead prioritising investment in key brands including The History of Whoo, CNP, Belif, The Face Shop, Dr. Groot, Yusimol, Physiogel, VDL, Dominas and Pra.L.
THE WHY? The decision reflects a broader industry trend towards portfolio rationalisation, with major beauty companies focusing resources on fewer, higher-potential brands while reducing complexity and improving competitiveness in global markets.
Source: Asia Business Daily
