Coway and SK Magic , home appliance rental companies, each recorded good results in the second quarter of this year. Coway continued its earnings growth, exceeding 1 trillion won in quarterly sales, and SK Magic improved sluggish profitability. In particular, it is analyzed that both companies gained popularity through marketing with group BTS and actor Song Hye-kyo, respectively, and enjoyed the popularity of overseas corporations and new water purifiers.
Coway announced on the 9th that it recorded KRW 1.62 trillion in sales and KRW 194.2 billion in operating profit on a consolidated basis in the second quarter. Compared to the same period last year, sales increased by 2.9% and operating profit increased by 10.3%.
On the same day, SK Magic announced that it recorded sales of KRW 286.4 billion and operating profit of KRW 22.5 billion on a consolidated basis for the second quarter. Compared to the same period last year, sales increased by 1% and operating profit increased by 117.8%.
Coway, No. 1 in the industry, solidifies its position with quarterly sales of
‘1 trillion’
Coway showed stable performance in Korea and rapid growth overseas. Coway claims to be a global environmental home appliance company, and produces, rents, and sells home appliances essential for living environments, such as water purifiers, air purifiers, and bidets. Home appliance rental is Coway’s main business area, but recently, it is encouraging customers who have completed the 5-year rental contract to sign up for a membership that allows them to own the product.
Coway’s domestic environmental appliance business sales in the second quarter were KRW 590.4 billion, up 2.9% from the same period last year. Among them, rental sales increased by 3.4% to KRW 557.9 billion, and the number of rental (including membership) accounts increased by 2.2% to reach 6.7 million.
In particular, the sales growth of overseas subsidiaries was remarkable. The number of rental (including membership) accounts at overseas subsidiaries increased by 14.5% in a year to 3.3 million. As a result, sales of Coway’s overseas subsidiaries in the second quarter were KRW 378.9 billion, up 7% from the same period last year. Among them, the Malaysian subsidiary grew by 3.9% to KRW 285.6 billion in sales, the US subsidiary to KRW 61.1 billion, up 13.7%, and the Thai subsidiary to KRW 24.5 billion, up by 25.7%. It seems that the effect of BTS
, which Coway has appointed as a model for 2021, is reflected here . As Coway began to use BTS in earnest in the second half of last year, sales continued to grow in global markets such as the US and Malaysia. Among them, the ‘Icon Ice Water Purifier’ featuring BTS as an advertisement model has been
It was called ‘BTS water purifier’ and became popular, and the number of rental accounts continued to expand, especially in Malaysia and Thailand, where BTS’ fandom is large.
Kim Soon-tae, Chief Financial Officer ( CFO ) of Coway, said, “Efforts such as expanding global market share and strategic marketing have led to stable earnings growth despite the difficult market environment.” We will continue to grow centered on ‘Rex’ and others.”
SK Magic even replaced the head … Is the thorny road over?
SK Magic has been able to improve profitability, which has been sluggish. Although domestic rental sales slightly decreased, global performance increased, driving overall sales growth, and efforts to improve profitability were also reflected.
SK Magic’s domestic rental sales decreased by 5.02%스포츠토토 year-on-year to KRW 194.5 billion in the second quarter. However, global and other sales increased 71.43% to 31.2 billion won, and home appliance sales also increased 0.16% to 60.7 billion won. In particular , SK Magic’s domestic rental accounts increased by 6.73% to 2.38 million, and the number of global rental accounts doubled to 160,000.
Three new products, including the ‘One Coke Ice Water Purifier’, introduced by SK Magic with Song Hye-kyo as a model in May and June of this year, were very popular with consumers. The ‘One Coke Ice Water Purifier’ has recorded high sales, exceeding 10,000 units in just 15 days since its launch in May. Efforts to increase sales through online channels, such as SK Magic Mall, also had a positive impact on profitability improvement. After launching new products such as water purifiers and bidets, SK Magic promoted various promotions such as rental discounts and exemptions on its website.
SK Magic is currently looking for a breakthrough by replacing most of its key executives. SKLast year, Magic recruited Kim Ja-joong, a former executive in charge of Coway’s global business, as the head of the Malaysian corporation, and began actively fostering its overseas business. Afterwards, at the end of June this year, Kim Wan-seong was appointed as the new CEO and the head of the Business Strategy Headquarters ( CFO ) was replaced to improve the constitution.
An official from SK Networks, the parent company of SK Magic, said, “New products such as ‘One Coke Ice Water Purifier’ have attracted consumer responses and have successfully rebounded. that,” he said.