[Asia Economy Reporter Jeong Hyunjin] Winia Dimchae achieved a turnaround to operating profit in the first half of this year. This result was achieved as demand for kimchi refrigerators expanded to the first half of the year instead of the kimchi-making season, and sales of air conditioners and other products increased. There is growing optimism that if this trend continues in the second half of the year, sales could reach 1 trillion won.
According to the industry on the 5th, Winia Dimchae recorded an operating profit of about 5.3 billion won in the first half of this year. Until now, Winia Dimchae had posted operating losses every first half, but this year it reversed that trend and turned a profit for the first time. Sales in the first half of this year were 458.4 billion won, up 34.4% compared to the same period last year.
The reason Winia Dimchae recorded such strong performance in the first half of this year is interpreted as pent-up demand caused by COVID-19 and the fact that sales of kimchi refrigerators, which were generally concentrated in the second half, are spreading into the first half. Kimchi refrigerators typically see annual sales concentrated in the kimchi-making season from September to December, with Winia Dimchae’s sales during this period accounting for more than 55%, and the peak season of October to November accounting for more than 40% of total sales.
However, recently, sales of kimchi refrigerators have increased in the first half of the year. Sales of gourmet home appliances such as kimchi refrigerators and rice cookers sold by Winia Dimchae expanded from 49 billion won in 2018 to 67.1 billion won in 2019, 94.5 billion won last year, and exceeded 120 billion won in the first half of this year. The production volume of kimchi refrigerators at the factory also increased from about 28,000 units in the first half of 2018 to over 70,000 units in the first half of this year.
Winia Dimchae explained, "The size of kimchi refrigerators is increasing and they are becoming essential home appliances, so the concentration of sales in the peak season is decreasing. Looking at sales performance over the past three years, first-half sales are gradually increasing," adding, "We expect the concentration of sales in the peak season to gradually ease in the future." Winia Dimchae also explained that the perception of kimchi refrigerators is spreading as multi-refrigerators or sub-refrigerators.
Along with this, sales of kitchen and household appliances also increased significantly. Since the beginning of this year, Winia Dimchae acquired domestic sales rights for Winia Electronics, and by including these results in Winia Dimchae’s performance, related sales also increased significantly. Sales related to kitchen and household appliances such as air conditioners, refrigerators, and air purifiers in the first half of this year amounted to 181 billion won, accounting for 87% of last year’s annual sales in the first half alone.
Meanwhile, Winia Dimchae is currently conducting a recall campaign for old kimchi refrigerators. If you own a kimchi refrigerator that has been used for more than 15 years, you can apply for a recall return during September. A professional engineer will visit your home to verify whether the product is subject to recall with the new product purchase receipt, collect the product, and provide a mobile gift certificate worth 100,000 won accordingly.
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