U-Tech, Luxury Distribution Sales Growth... "Driving Performance with Biohealthcare"

[Asia Economy Reporter Yoo Hyun-seok] U-Tech has achieved visible results in the imported luxury goods distribution business and is expecting it to drive performance alongside bio healthcare.

U-Tech announced on the 11th that the online and offline imported luxury goods distribution business, which has been promoted to secure stable sales and profits, is showing sales results in the second half of the year. Due to the expansion of the online market caused by COVID-19, it has recorded sales of 2.6 billion KRW and operating profit of 300 million KRW up to this month, showing stable sales growth.

Last year, the company entered the parallel import business of luxury brands such as Gucci, Prada, Balenciaga, Bottega Veneta, Yves Saint Laurent, and Moncler. The company explained that it signed a contract with Donghwa Duty Free in April and has been recording full-scale online and offline sales since mid-October.

A U-Tech official said, “According to the luxury industry practice, F/W products ordered at the end of last year were imported at the end of September, and full-scale sales began from mid-October,” adding, “Currently, we have secured various distribution channels such as Donghwa Duty Free, Jeju Duty Free, and NS Home Shopping, and considering the characteristics of the luxury market where sales increase at the end of the year and the expanding online distribution market due to the domestic spread of COVID-19, we expect to achieve more stable performance in the fourth quarter.”

He said, “The internal reserves secured by restructuring and organizing deficit businesses met the characteristics of the distribution industry, which requires capital strength, and were one of the driving forces behind the performance increase,” and expressed confidence, saying, “With the growing luxury distribution business, mask sales, and improved performance of the Vietnam factory, we will realize operating profit of over 1 billion KRW this month alone.”

Meanwhile, U-Tech aims to achieve a complete structural reform by leading the growth of the bio healthcare business, which the company is focusing on, along with the successfully established imported luxury goods distribution business in the market.