[Masked Listed Companies] 'Jaan' Targets Market with Fashion Masks

[Asia Economy Reporter Hyunseok Yoo] Jaan is targeting the market with fashion masks. They judged that existing masks available on the market lack competitiveness.

Since August last year, Jaan has been engaged in the mask business. They invested 2.5 billion KRW to acquire an apartment-type factory in a knowledge industry center located in Danwon-gu, Ansan-si, Gyeonggi-do. Additionally, they spent another 2.5 billion KRW to set up 10 mask production machines. In December last year, they raised 34.5 billion KRW through a paid-in capital increase. Of this, 9.4 billion KRW will be used for procuring mask raw materials and labor costs.

Preparations for mask production are mostly complete. According to the investment prospectus from December last year, Jaan finalized the selection of six raw material suppliers and completed price negotiations. They have also already purchased raw materials for promotional products. The procurement of raw materials will be executed in line with the full-scale production and sales plans.

Initially, Jaan did not intend to directly engage in the mask business, as their main focus was the platform business. Moreover, the long lead times involved in receiving products through outsourcing became a burden, leading them to proceed directly. CEO An Sichan of Jaan said, "At first, we planned to proceed with the business through Original Equipment Manufacturing (OEM) or Original Design Manufacturing (ODM), but we received feedback that it would be difficult to produce the products we wanted in terms of design, so we decided to proceed directly."

They will release products that differ from the typical masks available on the market. Since the functional aspects have already been standardized at a high level, they plan to strengthen fashion elements to target the market. Currently, Jaan has signed license agreements with fashion brands Hydrogen and Ereuno and is preparing to launch products. They also plan to release their own brand, Selekon. CEO An said, "Even if COVID-19 infections decrease, masks will remain an essential item in daily life. Since the functionality of masks has been standardized, I believe that brand and design will become important."

To this end, each brand’s masks have distinctive points. For example, the Hydrogen mask features logos on the straps, surface, and inside as highlights. The outer surface is also glossy and shiny, making it more luxurious compared to products currently distributed in the market. Additionally, Ereuno has strengthened the 'fashion' aspect by adding color accents to the mask straps.

They also ensure the basic performance that the products must have. In November last year, they obtained approval from the U.S. FDA (Food and Drug Administration). They are also in the final stages of obtaining European CE certification and domestic KF certification. Furthermore, they plan to prepare various services to encourage continuous purchases rather than one-time buys. By introducing subscription services, they aim to deliver products in package formats that include not only masks but also straps and charms.

In particular, they plan to expand sales channels overseas as well as through the platforms owned by Jaan Group and Jaan. CEO An said, "For example, Hydrogen is a well-known brand in Japan and Europe. We plan to conduct business by selling products to distributors of this brand."