Coway Thai Subsidiary Sees 50% Sales Surge, Raising Hopes as "Second Malaysia"

Coway's Thai Subsidiary Gains Attention as Growth Mirrors Malaysia
Strengthened Lineup with New Products Proves Effective

Coway's Thai subsidiary is drawing attention as the "second Malaysia." This is because it is demonstrating a growth rate similar to when the Malaysian subsidiary's sales began to surge. Currently, the Malaysian subsidiary accounts for 75% of Coway's total overseas sales. If the Thai subsidiary can replicate Malaysia's performance, a "quantum leap" is expected in Coway's overseas business.

According to Coway on August 11, the Thai subsidiary recorded sales of 85.8 billion KRW in the first half of this year, with 42.9 billion KRW in both the first and second quarters. Compared to the previous year, sales increased by 43.9% in the first quarter and by 49.5% in the second quarter. The company explained that sales of air purifiers surged due to concerns over ultrafine dust and air pollution in the local market earlier this year, and sales of water purifiers also increased. A Coway representative stated, "As we expanded brand marketing activities in Thailand, sales of water purifiers and air purifiers increased, which led to continued sales growth."

The industry is paying close attention to this growth rate. Due to the nature of the rental business, once initial investments and marketing efforts have been made and the business enters a growth trajectory, there is a high likelihood of gaining further momentum. Coway's Malaysian subsidiary also began rapid growth in 2016, with sales increasing by 46.3% compared to the previous year, followed by a growth rate of 45.1% in 2017 and 70.3% in 2018, maintaining a strong growth trajectory.

Currently, Malaysia has become the core of Coway's overseas sales. In the second quarter, Coway achieved its highest-ever quarterly overseas subsidiary sales of 472.8 billion KRW, with 355.5 billion KRW coming from Malaysia alone. Notably, operating profit reached 67.8 billion KRW, a 44.2% increase from the previous year. As of the second quarter, Coway's total overseas rental accounts numbered 4.02 million, with Malaysia accounting for 3.39 million of these. The company explained that continued sales growth was driven by strong sales of home care and Birx product lines, as well as the launch of new categories. If the Thai market, which is currently in the early expansion stage, can play the role of a "second Malaysia," Coway's global market expansion strategy could enter a new phase.

Alongside the performance of its overseas subsidiaries, Coway also achieved domestic sales of 730.3 billion KRW in the second quarter, an 11.4% increase from the same period last year. This was the result of strengthening its product lineup by launching four new water purifier models, including Icon Pro, and two new dehumidifier models, including the Noble Dehumidifier Air Purifier, leading to solid sales growth across major product categories. The net increase in domestic rental accounts in the second quarter was 160,000 units. Combining overseas and domestic sales, Coway's consolidated sales for the second quarter reached 1.2589 trillion KRW, a 16.3% increase from the same period last year. Operating profit also rose by 14.9% to 242.7 billion KRW.

Coway CFO Kim Soontae stated, "Our investments in core areas such as R&D, marketing, and digital transformation are beginning to yield tangible results, enabling us to maintain double-digit high growth both domestically and overseas." He added, "In the second half of the year, we will further solidify our overwhelming market leadership by achieving strong sales results, led by ice water purifiers and Birx beds and massage chairs."