In order to establish our traditional Korean medicine-based cosmetics brand WHOO as a global brand, LG H&H is running an active marketing campaign through TV commercials and magazine ads. Meanwhile, our herbal cosmetics brand belif is gaining popularity thanks to its competitive product quality and its sophisticated design and philosophy. With the launch in Singapore as a start, its popularity is growing in Indonesia. We plan to add more stores in major department stores and expand our globalization efforts.

Our cosmetics brand Beyond with its high quality and affordable price point, launched successfully Hong Kong area. We plan to increase its appeal to global consumers by emphasizing our eco-friendly brand message and its participation in the no animal testing campaign and the protection of endangered species. In the Household goods business segment, we are promoting the oral care and detergent brands as global brands.

The oral care brand Perioe has successfully debuted in strategic regions, namely western Russia, Ukraine, and Kazakhstan, and is increasing its marketing activities. Our laundry detergent brand Tech and fabric softener brand Saffron are ready to enter new overseas markets. In Japan, the Saffron brand is extended to include laundry products. In response to the needs of consumers we are renewing the existing products and launching new products as well.

In order to increase brand recognition, we plan to run brand campaigns through large channels and customized promotions through smaller channels. Our local subsidiaries in China and Vietnam plan to hire more local employees to better identify the fast-changing needs of local consumers in more personal manner, so that we can reflect their needs in product development and increase customer satisfaction. In addition, in consideration of geographical conditions, we continue to increase purchasing from local suppliers with competitiveness in material quality and prices. In 2012, our local purchasing accounted for 79 percent (excluding THEFACESHOP).