[Click eStock] "Silicon2 Expands Global Market Following US and Europe"

Yuanta Securities analyzed on the 7th that Silicon2 is expanding its global market following the United States and Europe.

Silicon2 exports K-Beauty brand products to approximately 160 countries worldwide through its own platform via e-commerce direct retail sales and corporate customers (wholesale). It operates a retail and wholesale platform based on localized business using overseas branches and a smart logistics center utilizing Korea's first AGV logistics robots.

Lee Seung-eun, a researcher at Yuanta Securities, stated in the report, "Following the United States, which maintains the top sales by country, the Netherlands (Europe) recorded the second highest sales and is growing at a rapid pace," adding, "This is attributed to the localization strategy, popular K-Beauty brands, a diverse product portfolio, and the use of various distribution channels."

Researcher Lee said, "The European branch established in June last year recorded sales of 9.9 billion KRW in the first quarter and is expected to record 12 billion KRW in the second quarter," and forecasted, "The company plans to expand its global K-Beauty platform through the launch of subsidiaries in Vietnam (full operation in the second half) and Russia, as well as entry into the Middle Eastern market."

He analyzed, "Silicon2's ratio of advertising and sales expenses to sales is on a declining trend," adding, "They expose products through influencer marketing and sampling across various channels, and collaborate with brands to conduct marketing focused on specific product groups, achieving high cost-effectiveness."

He continued, "Among the more than 430 brands cooperating with Silicon2, brands such as Joseon Beauty, ANUA, COSRX, and Round Lab are showing growth and driving Silicon2's sales growth," and predicted, "Based on this, the number of brand partners is expected to continuously increase in the future."