Naracella to Expand Second-Half Supply Volume: "Proactive Response to Expected Demand Increase"

Naracella announced on October 2 that it will expand its supply volume for both online and offline channels in the second half of the year. This proactive move is in response to an expected increase in demand, driven by a rise in inbound tourists, a recovery in the domestic economy, and the seasonal surge related to holidays.

Recently, Naracella has consistently expanded product distribution by introducing a number of new brands in its strong online channels, such as major luxury hotels and high-end restaurants nationwide. In addition, the surge in group tourists from overseas has brought about structural changes in the hotel and casino industries. Coupled with the second round of consumption coupon distribution policy in October, the company anticipates accelerated performance growth in the second half of the year.

The government decided to implement a temporary visa-free entry policy for Chinese group tourists from September 29 until June 30 of next year. The plan aims to simplify entry procedures for "Youke" (Chinese tourists), encourage additional visits to Korea, and stimulate the local economy by boosting domestic demand.

Furthermore, with China's largest holiday, National Day, coinciding with the APEC (Asia-Pacific Economic Cooperation) Summit, the influx of tourists to Korea is expected to increase even more. Typically, a rise in foreign tourists has a positive ripple effect across related industries such as duty-free shops, the restaurant sector, and alcoholic beverages. In particular, demand for premium wine and spirits as souvenirs and gifts is expected to directly contribute to Naracella's improved performance.

Naracella has traditionally seen a surge in demand during holidays and the year-end season, leading to a sharp increase in second-half results. This year, the added impact of government policies is expected to further boost performance in hotel and fine dining channels, providing additional momentum for growth.

The second round of consumption coupon distribution is also expected to stimulate domestic demand, leading to increased sales of premium gift sets. As seen during the first round, when average credit card sales at small business establishments nationwide rose by 6.44%, a similar positive effect is anticipated this time. In response, Naracella has strengthened its supply system, including logistics and inventory management.

A Naracella representative stated, "The dual momentum of increased tourist spending and domestic demand stimulation will have a positive impact across both online and offline channels. With the combined effects of government policies and seasonal demand, we expect even more pronounced sales growth in the second half of this year, and we aim to maximize profitability leverage through these opportunities."