Lock&Lock, Q1 Sales Reach 100.1 Billion KRW... Maintaining 95% Year-on-Year

Lock&Lock's Pengsoo Water Bottle Series. Photo by Lock&Lock

[Asia Economy Reporter Moon Hyewon] Lock&Lock announced on the 15th that its sales in the first quarter of this year reached 100.1 billion KRW.

Lock&Lock explained, "Despite the adverse effects of the novel coronavirus infection (COVID-19), we maintained 95% of last year's first quarter sales," adding, "This was due to the strong performance of strategic channels such as online and key categories."

According to Lock&Lock, in the Chinese market, which accounts for about 40% of total sales, first quarter sales this year decreased by 20.5% compared to the same period last year but showed a rapid recovery based on online sales in March. Operating profit during the same period fell by 78.2%. This was due to the stagnation of the domestic Chinese market, the largest sales market, and the base effect of increased marketing expenses in China. When reflecting the Chinese government's profit preservation subsidies, the decrease in operating profit is about 37.1%.

Sales in Korea increased by about 15% in the first quarter. Sales were driven mainly by growth channels such as online and home shopping, achieving 24% and 9% growth respectively compared to the same period last year. Due to the COVID-19 issue, consumers flocked to online channels, and online B2B (business-to-business) sales also increased by 96%. Thanks to the COVID-19 special demand, mask sales surged, and small home appliances focused on sterilization, food storage containers, and cookware sectors achieved growth of 1,131%, 15%, and 12%, respectively.

In Vietnam, sales decreased by 12% due to the spread of COVID-19, which led to the closure of major shopping malls and stores and movement restrictions. However, the strategic channel of online sales increased by 24%. The decline was relatively larger in non-core categories outside the four major focus categories.

The growth of countries considered emerging strongholds for Lock&Lock is also notable. In Indonesia, where sales grew by 94%, sales at directly operated stores decreased, but all key channels including online, home shopping, and B2B grew. In particular, small home appliances surged by 964%.

In Thailand, online sales increased by 545%, and sales at directly operated stores such as PlaceLL, which opened in the second half of last year before the direct impact of COVID-19, increased by 417%. Similar to Indonesia, the small home appliances category expanded, achieving more than 50 times the performance compared to the same period last year.

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