[Asia Economy Reporter Hyunseok Yoo] Clio is expected to improve its performance due to entry into H&B channels and an increase in online sales proportion.
On the 7th, according to the financial investment industry, DB Financial Investment Securities forecasted that Clio's sales and operating profit this year will reach 262 billion KRW and 18 billion KRW, respectively. This represents increases of 20.1% and 189.8% compared to the previous year.
The factors behind the performance improvement are attributed to the effects of entering H&B channels and the increase in online sales proportion. Hyunjin Park, a researcher at Shin Young Securities, stated, "While the recovery of offline channel sales is slow, the trend of increasing online channel proportion in H&B channels and exports continues. Major buyers in H&B channels are focusing on online channel marketing, and it appears that the demand recovery for brands like Clio and Peripera, which hold top brand positions in H&B channels, is also occurring through online channels."
Additionally, the increase in export countries is considered a key factor. He emphasized, "Exports to China are steadily increasing from the previous Japan-centered exports, and sales on Amazon are also performing well, showing a clear quarterly increase trend in exports to the United States. Peripera is achieving excellent results in the Amazon lip product category, and demand both online and offline within China, including the Chinese direct purchase channel, is contributing to overseas export performance."
The launch of an inner beauty brand is also expected to contribute to growth. He explained, "The launch of an inner beauty brand is expected in March, which may facilitate responses to large e-commerce channels mainly focused on online channels. While continuously reducing dependence on Club Clio's offline store channels, it is expected to recover momentum through growth in online and export channels and entry into the inner beauty market."
The reduction of fixed cost burdens related to directly operated offline channels is also a positive factor. He said, "The process of reducing fixed cost burdens related to directly operated offline channels is in its final stages. As dependence on channels such as online and exports is increasing, we believe there is no difficulty in achieving a 7% operating profit margin in 2021."
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