Aekyung Industrial, 588.1 Billion KRW in Sales Last Year... 16.1% Decrease from Previous Year
Operating Profit Falls 63% Year-on-Year to 22.4 Billion KRW
Strengthening Domestic and International Digital Marketing and Expanding Global Presence
[Asia Economy Reporter Seungjin Lee] Lifestyle beauty company Aekyung Industrial announced on the 4th that it recorded consolidated financial statements for 2020 with total sales of 588.1 billion KRW, operating profit of 22.4 billion KRW, and net profit of 11.4 billion KRW. Due to the prolonged impact of COVID-19 throughout the past year, these figures decreased by 16.1%, 63.1%, and 72.7% respectively compared to the previous year.
The household goods business posted total sales of 377.1 billion KRW in 2020, an increase of 4.9% year-on-year, while operating profit was 9.1 billion KRW, down 24.4% from the previous year. The household goods segment saw sales growth driven by the hygiene-specialized brand ‘Lapsin’ and personal care products such as hair and body care. However, operating profit declined due to continued investments in advertising and digital marketing to strengthen the brand. Aekyung Industrial explained that through sustained digital marketing investments, domestic digital channel performance grew by 27% compared to the previous year.
The cosmetics business recorded sales of 211.1 billion KRW and operating profit of 13.3 billion KRW last year, decreasing by 38.3% and 72.7% respectively from the previous year. The prolonged impact of COVID-19 led to sluggish recovery in sales across major domestic channels, resulting in decreased performance. On the other hand, continuous brand investment and demand improvement, especially in the Chinese market, showed signs of recovery. Notably, during the November 11 Singles’ Day event in China, AGE 20’s grew by 24% compared to 2019 at the ‘Tmall International Aekyung Flagship Store’ and ranked first in BB cream sales on ‘Tmall’ for the third consecutive year.
In 2021, Aekyung Industrial plans to continue research and development and domestic and international marketing investments to establish sustainable growth engines in preparation for the post-COVID-19 era. To this end, the company laid the groundwork for global expansion last year by officially entering the world’s largest e-commerce platform Amazon and Southeast Asia’s largest online commerce platform Shopee. This year, it plans to strengthen brand awareness and expand the range of products offered.
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Aekyung Industrial also plans to expand offline market presence and sales in the Chinese market alongside its established online market base. To achieve this, the company signed a memorandum of understanding (MOU) in January with the Chinese native cosmetics company ‘Proya Cosmetics’ to build a partnership. Through Proya Cosmetics’ offline stores and distribution networks, Aekyung Industrial’s cosmetics will be sold. Additionally, alongside cosmetics, the company plans to expand the hair care market through the ‘Aekyung Kerasis’ flagship store opened on Tmall last year.
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