[Market Focus] Cheongdam Global Gains Spotlight as JD.com, Tmall Distribution Network Benefits from China-Japan Tensions

Cheongdam Global's stock price is showing strong performance. As trade tensions between China and Japan intensify, there is even talk of sanctions on the cosmetics industry. This has fueled expectations that Cheongdam Global, a beauty and healthcare company with an established distribution network in China, could benefit as a result.

As of 1:49 p.m. on November 20, Cheongdam Global's stock price was up 6.74% from the previous day, trading at 7,760 won.

Concerns have grown that the Chinese government, after officially notifying a suspension of Japanese seafood imports, may expand sanctions to include cosmetics, which are a major export item for Japan. This has further heightened expectations for Cheongdam Global to benefit in this situation.

According to Bloomberg News, David Pandrich, Portfolio Manager at Carlson Capital, stated, "The potential spread of anti-Japanese sentiment could cause significant damage to Japanese companies that are highly dependent on Chinese demand." The stock prices of Japanese cosmetics companies such as Shiseido, which derive a large portion of their sales from Chinese consumers, have already plummeted.

As relations between China and Japan continue to deteriorate, there is growing anticipation that domestic cosmetics companies could benefit. In particular, Cheongdam Global, which has a strong distribution network in the Chinese market, is drawing attention.

Cheongdam Global, a company specializing in overseas cosmetics distribution, is considered competitive because it has expanded its transactions from business-to-business (B2B) platforms such as JD.com and Tmall to direct-to-consumer (D2C) channels like Douyin (TikTok), Kuaishou, and Xiaohongshu.