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[Alpha Biz=(Chicago) Reporter Kim Jisun] Shinsegae International's own brand "VIDI VICI" continues to suffer from sluggish sales. Vidivici is a brand with a particularly high proportion of Chinese sales among Shinsegae International cosmetics brands.
In the wake of this year's endemetic (an endemic disease of infectious diseases), Shinsegae International has stepped up its distribution network in China and local marketing, which had been dampened by the new coronavirus infection (COVID-19), but sales have not recovered. Vidivici is struggling with the opening of an official brand hall on the TikTok channel in June.
Shinsegae International announced on the 9th that its sales and operating profit in the third quarter of this year were KRW 315.8 billion and KRW 6 billion, down 18.5% and 75.1%, respectively, from a year earlier. Sales in the fashion sector fell 32 percent and cosmetics fell 4 percent, while the household goods sector rose 4 percent.
In particular, if you look at the cosmetics sector, sales of imported cosmetics, which mainly hold Nichi perfume such as Deep Dik, Viredo and Santa Marianovela, accounted for about 80 percent to 75.4 billion won, breaking a new record. On the other hand, Vidivich's sales fell 47% to 12.5 billion won compared to the same period last year.
In 2018, VIDI VICI recorded sales of 125 billion won, accounting for more than half of Shinsegae International's cosmetics sales. It also achieved 200 billion won in sales in 2019.
Seven years after Shinsegae International took over, it grew more than 100 times from 1.9 billion won in sales to 200 billion won. However, this year's VIDI VICI sales are estimated to have shrunk by a quarter to about 50 billion to 60 billion won.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
