The cosmetics industry in South Korea is mainly high-end brands with growth

The latest data shows that the cosmetics industry is dominated by high-end brands with strong growth momentum. According to the report recently released by park jongdae, a researcher of financial investment in Hanya, the fourth quarter of 2019's performance is dominated by high-end brands, especially the growth of duty-free stores and online channels. Amorepacific expects sales of KRW 13530 trillion and operating profit of KRW 72 billion in the fourth quarter. Year on year growth of 11% and 201%, respectively. The sales of duty-free stores, digital channels, snow show and other channels and brands increased by more than 20% year on year, which led to the improvement of performance. It is reported that this is influenced by positive and negative complex factors, such as the high growth of duty-free stores and digital channels, the improvement of sales of xuehuaxiu ziyinsheng series, etc., but the negative growth of Chinese poetry, the decrease of on-site sales of aritaum, and the low profitability of overseas legal persons are negative factors.

It is speculated that LG life health's sales volume in the fourth quarter was 1.8590 trillion won, and its operating profit was 230 billion won, up 9.4% and 9% year-on-year respectively. Sales of duty-free stores and cosmetics in China are expected to grow 25% year-on-year, respectively, leading to external growth and improved earnings. The proportion of high-end brands is relatively high. Although the sales scale and brand power of "post" are at the top level in the world, it also has the limitation of over relying on "post" for high-end brands. The fourth quarter sales of Aijing industry may be 183 billion won, and its operating profit may reach 17.5 billion won, up 4% and 29% year-on-year respectively, which also exceeds the market expectation. Due to the impact of new products, the sales of home shopping channels rose to the level of the previous year from October to November, and the part of duty-free stores is in balance with the local sales in China. It is estimated that the export volume will increase by 24% year on year to 38.5 billion won. It is estimated that Clio's revenue in the fourth quarter was 67 billion yuan, up 36% year on year. Operating profit is expected to decrease by KRW 4.6 billion from the third quarter due to bonus impact.

Although the decrease in the number of club Clio stores leads to the decrease in sales, the sales of H & B, online, tax-free and global channels are still expected to increase by about 50% year on year, driving the external growth. The industry indicators also continued to improve. According to the data, the cosmetics export increased by 20% year on year in the fourth quarter, accounting for 40% of the total export to China, occupying an absolute advantage. From a regional perspective, exports to China and Japan increased by 40% and 45% year-on-year respectively, while exports to the United States fell by 12%. The sales of duty-free stores with higher proportion of high-end brands are more positive. Despite a drop in the number of Chinese citizens leaving the country as a result of the boycott of Japanese goods, it is estimated that the duty-free shop industry will still grow by 32% year-on-year in the fourth quarter. Researcher nbsppark jongdae said that if high-end brands with high brand trust have good performance this year, they will probably have better performance next year. On the contrary, middle and low-end brands are very popular. If they have good performance this year, their performance next year is likely to decline. After that, he also said: "amorepacific is gradually moving from the low-end and offline to the high-end and online. It is very important for LG life to improve the popularity and sales growth of high-end brands such as Su Mi 37 ° and Ou Hui in China, especially for Clio, on the basis of the sustained growth of H & B channels, if it continues to expand its online channels and expand its product categories, as a representative cosmetics company in China The value of the company will be greatly increased. "