[Asia Economy Reporter Jang Hyowon] On the 17th, KB Securities evaluated Cheongdam Global as a commerce company equipped with steep growth in its core business and expectations for new business.
Cheongdam Global is a cosmetics specialized distribution company established in 2017. It mainly distributes products as a primary vendor on Chinese e-commerce platforms such as JD.com and Tmall. It also provides comprehensive solutions including consulting, marketing, and distribution to brand companies wishing to enter the global market based on consumer big data analysis.
Cheongdam Global's sales in the first half of this year reached 120 billion KRW, a 124% increase compared to the same period last year. Operating profit was 6.1 billion KRW, up 121%, with an operating profit margin of 5.1%.
Researcher Park Shinae of KB Securities analyzed, "As of the first half of this year, Cheongdam Global's sales contribution from JD.com accounts for 85%, but expansion of sales channels to new platforms is expected." She added, "Although the proportion of cosmetics sales was 91% in 2020, thanks to continuous expansion of product categories such as health functional foods, the proportion decreased to 60% in the first half of this year."
Researcher Park also said, "Business expansion into D2C channels through fostering its own direct purchase mall 'Byshuco' is also anticipated." She explained, "Based on continuous customer base expansion, the company plans to diversify revenue sources through franchise payments and advertising fees, and in the mid to long term, enter duty-free shops and road shop channels to grow into a comprehensive direct purchase mall covering both online and offline."
However, she pointed out, "The sales structure centered on China, which accounts for 98%, high sales dependence on JD.com, and product categories centered on cosmetics are risk factors."
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