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View of Lock & Lock outlet directly. (Photo = Lock & Lock) |
[Alpha Biz=(Chicago) Reporter Kim Jisun] Lock & Lock will liquidate two local sales firms by the end of this year due to worsening Chinese business. As sales declined and deficits continued, it is believed that the company is reorganizing its business.
According to News 1 on the 26th, Lock & Lock will liquidate its Beijing subsidiary in Beijing, China, and its Shenzhen subsidiary in Shenzhen this year.
Established in 2006 and 2007, respectively, the Beijing and Shenzhen corporations recorded the largest sales ever in 2013. At that time, the combined sales of the two corporations reached more than 100 billion won, accounting for more than 30% of China's total sales. It ranked second to third in sales among overseas subsidiaries in more than 10 countries, but its performance has since steadily declined.
Lock & Lock Beijing Corporation recorded sales of 7.478 billion won and net loss of 3.358 billion won last year. Compared to sales of 58.478 billion won and net profit of 4.73 billion won in 2013, the figure fell sharply.
The Shenzhen corporation also recorded sales of 16.791 billion won and net loss of 3.544 billion won last year, down significantly from sales of 54.055 billion won and net profit of 4.567 billion won in 2013. In particular, Shenzhen Corporation has been suffering a net loss for the fourth consecutive year as China's domestic economy has stagnated due to COVID-19.
The industry attributed the worsening performance to a drop in sales of consumer goods due to the offensive of cheap Chinese products and China's sluggish domestic economy after COVID-19.
In fact, Lock&Lock's total sales in China in 2013 recorded 272.929 billion won, but last year it fell by almost half to 162.366 billion won.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
