Even if the market is gloomy... Underwear companies smiling thanks to masks

[Asia Economy Reporter Yujin Cho] As concerns over the spread of the novel coronavirus infection (Wuhan pneumonia) have caused a shortage of masks, underwear companies are focusing on expanding production. While facing difficulties due to market stagnation in their core business of manufacturing underwear and lingerie, they are seeing strong sales in overseas markets thanks to masks.

According to the related industry on the 4th, Ssangbangwool and Namyoung Vivian recently signed large-scale supply contracts to provide masks to the Chinese market and decided to start full-scale mask production. Ssangbangwool recently signed a supply contract for 500,000 KF94 fine dust prevention masks with the Yanbian Prefecture government in Jilin, China. At the request of the Yanbian government, Ssangbangwool will supply masks to China through an Original Equipment Manufacturer (OEM) method.

Ssangbangwool is the only domestic underwear company that owns its own production factory in Hunchun City, Jilin Province, China. The masks to be supplied this time are expected to be produced at this factory. A Ssangbangwool official said, "About 500,000 masks will be supplied to the Chinese market as the first batch," adding, "Additional production is planned in two to three more phases."

Ssangbangwool started manufacturing and selling masks in June last year as demand for masks increased every year due to fine dust. The currently sold mask product line consists of one type of fine dust prevention mask. Although the sales proportion of the mask sector is less than 1% of total sales and is insignificant compared to the core underwear manufacturing business, it is expected to help raise brand awareness of Ssangbangwool in the Chinese market.

Lingerie company Namyoung Vivian also signed a contract to supply 1 million KF94 New Cleanwell yellow dust prevention masks to the distributor K-Pop Goods. Since the outbreak of the new coronavirus, inquiries for mask exports have reached over 30 million units. Namyoung Vivian started selling masks last March by launching two types: Eco Yellow Dust Prevention Exhaust Valve and New Cleanwell Yellow Dust Prevention Masks.

Earlier, on the 27th of last month, 10,000 New Cleanwell masks sold at the Lotte Department Store main branch, which attracts many tourists, were sold out within a day of sales starting. A Namyoung Vivian official said, "We are currently operating an emergency work system as production alone cannot meet demand, and we are also considering additional production facility expansions." Namyoung Vivian owns its production line through equity investment rather than owning its own factory.

[Image source=Yonhap News]

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