Fan and Air Circulator Shipments Up 40% and 47% Respectively
Fan Heater Stocks Sold Out in 3 Months Due to Camping Popularity
Heading to Seonyudo New Headquarters, Reaffirming Commitment to Becoming a Leading Home Appliance Brand
[Asia Economy Reporter Lee Junhyung] Shinil Electronics, known as the "seasonal home appliance specialist," has soared. This is thanks to the significant increase in seasonal home appliance sales due to the prolonged COVID-19 pandemic and the spread of the "stay-at-home" culture last year. Sales of camping-related appliances, which grew alongside the rise in camping enthusiasts, also played a role. Shinil Electronics plans to expand its product lineup to include lifestyle and kitchen appliances and leap forward as a comprehensive home appliance company.
Shinil Electronics announced on the 11th that its operating profit last year is preliminarily estimated to have increased by 328.5% compared to the previous year, driven by strong sales of seasonal home appliances. Last year's sales amounted to 172 billion KRW, an 18% increase from 145.9 billion KRW the previous year.
The background of these "rosy" results lies in Shinil Electronics' traditionally strong sales of seasonal home appliances. In particular, early heatwaves and social distancing measures extended "stay-at-home" time, boosting summer appliance sales.
According to Shinil Electronics, the shipment volume of fans in the first half of last year was 1.4 million units, a 40% increase from 1 million units the previous year. The shipment volume of air circulators, which circulate indoor air, also increased significantly due to the prolonged rainy season. In the first half of last year, Shinil Electronics shipped 375,000 air circulators, a 47% increase from 255,000 units the previous year.
Winter appliance shipments were also substantial. Last year, shipments of electric blankets and humidifiers increased by 107% and 97%, respectively, compared to the previous year.
Sales of camping-related appliances also positively impacted performance. Camping, which allows people to enjoy leisure activities while minimizing face-to-face contact, has gained widespread popularity. A representative product is the fan heater. The fan heater is a product that incorporates a fan into a kerosene stove. It purifies indoor air along with heat, providing better heating efficiency and safety compared to typical camping stoves.
Last year, Shinil Electronics shipped about 20,000 fan heaters, a 33% increase from the previous year. The fan heater, which began sales in August last year, attracted industry attention as all prepared stock was sold out by October. Shinil Electronics even operated overseas factories to secure additional inventory.
Although Shinil Electronics has been a strong player in the seasonal home appliance sector, maintaining the No. 1 market share in domestic fans, it is striving to transform into a comprehensive home appliance company by diversifying its product lineup. To this end, in March last year, the company changed its name from Shinil Industry to Shinil Electronics for the first time in 61 years, aiming to shed the brand image of being just a "fan company." In July last year, the company relocated to a new headquarters in Seonyudo, Yeongdeungpo-gu, Seoul, reaffirming its determination to become a leading comprehensive home appliance company.
Meanwhile, Shinil Electronics' sales composition consists of 40% summer appliances such as fans and air circulators, 30% winter appliances such as heaters, and the remaining 30% from lifestyle and kitchen appliances.
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