Hengsheng Group Launches Cosmetics Business Amid Hanhanryeong Lift Opportunity... "Expecting New Growth Engine"

KOSDAQ-listed company Hengsheng Group announced on the 12th that it will focus on nurturing the cosmetics distribution business, conducted through its wholly-owned subsidiary HS Beauty, as a new growth engine.

Hengsheng Group entered the cosmetics business in July last year, leveraging the network built from its existing core business of toy manufacturing and distribution. It discovers and sources competitive domestic small and medium-sized cosmetics brands and distributes them in the Chinese market.

In its first year of entering the cosmetics business last year, sales reached over 6 billion KRW within half a year, successfully entering the market. This year, the company plans to actively expand the number of distributed brands and product items, currently around 30, to continue growth. In particular, with expectations of the lifting of the Han-Han-ryeong and domestic demand stimulus measures, internal and external conditions are expected to improve, leading to a bright business outlook.

A Hengsheng Group official stated, “Although it has been a short time, we were able to successfully establish ourselves in the market based on securing cosmetics-related professionals and our existing sales network in China,” adding, “We will continuously strengthen the cosmetics business by discovering competitive domestic brands and expanding sales channels.”

He added, “This year is a golden opportunity to expand the business as Chinese consumers’ preference for Korean cosmetics is expected to rise due to domestic demand stimulus measures and the lifting of the Han-Han-ryeong in China.”

Meanwhile, the China-Asia Pacific Cooperation Center, the preparatory organization for the Asia-Pacific Economic Cooperation (APEC) summit in China, plans to dispatch a cultural delegation to Korea this month. This visit by the Chinese cultural delegation to Korea is making the possibility of lifting the Han-Han-ryeong more visible.