EcoMarketing Expected to Expand Achievements from 'Ohora' Launch

[Asia Economy Reporter Kum Boryeong] Eco Marketing is expected to see short-term limited growth in its core business due to a contraction in the advertising market, but there is optimism about expanded results driven by 'Ohora'.

According to Samsung Securities on the 28th, expectations for Eco Marketing's performance driven by 'Ohora' remain valid. Ohora is a gel nail brand, and Eco Marketing secured a new advertiser by investing 20% equity in Gluga, which owns Ohora, in September last year. Minha Choi, a researcher at Samsung Securities, explained, "Considering Ohora's growth potential, a sharp increase in profits is expected this year. Since the beginning of this year, the billing method has been changed to link advertising expenses to sales, which will drive the expansion of core business performance."

Regarding the mini massager 'Cluck', it is analyzed that its life cycle has passed its peak domestically. Researcher Choi said, "It is difficult to expect significant short-term performance growth in the media commerce sector as well. Although the initial response to the newly launched sleep-specialized brand 'Monje' at the beginning of the year is not bad, it is still insufficient to offset the sales decline of Cluck, which has entered a sales slowdown cycle. Cluck has established itself as a steady seller, but its life cycle has passed the peak domestically. There is potential for expanding Cluck sales through overseas channels, and various products including Yurica's 'Brush Cleaner' are gaining word-of-mouth popularity and achieving results, so there is room for gradual profit improvement," he said.

With the outbreak of the novel coronavirus disease (COVID-19) dampening consumer sentiment, advertising expenses are estimated to be lower than expected. Various events and promotions were canceled due to restrictions on outdoor activities. As economic uncertainty grows, it is also likely that clients have reduced or deferred their advertising budgets. Researcher Choi analyzed, "Digital advertising, Eco Marketing's main area, is presumed to be relatively less affected, so a solid performance is expected. However, due to the overall sluggish advertising market, it will be difficult to show the high sales growth trend seen so far in the first quarter."