After JAJU moved from Shinsegae International to Shinsegae Casa, the two affiliates began showing clearer roles.
Casa is expanding as a lifestyle company, while International is refocusing on fashion and beauty.
Chung Yoo-kyung, Chairwoman of Shinsegae.
[Insight Korea = Kim Ji-ho]
The effect of Shinsegae Chairwoman Chung Yoo-kyung’s reshuffle of JAJU became visible in first-quarter earnings. After JAJU was transferred from Shinsegae International to Shinsegae Casa, the two subsidiaries improved in different ways. Casa expanded in scale, while International strengthened profitability.
According to the Financial Supervisory Service’s electronic disclosure system on the 20th, Shinsegae Casa posted first-quarter sales of 111.4 billion won and operating profit of 800 million won. Sales rose 78.8 percent from a year earlier, while operating profit turned from a loss to a profit. The transfer of the JAJU business significantly expanded Casa’s revenue base and appears to have had a positive effect on profitability.
Shinsegae International benefited from improved profitability. The company recorded consolidated first-quarter sales of 295.6 billion won and operating profit of 14.8 billion won. On a continuing operations basis excluding JAJU, sales rose 15.7 percent from a year earlier, while operating profit jumped 452.6 percent. Its core fashion and beauty businesses grew evenly, showing that the effect of business restructuring has begun in earnest.
JAJU Reshuffle Clarifies Affiliate Roles
Chung’s relocation of JAJU has clearly divided the roles of the two companies. On Jan. 1 this year, Shinsegae Group transferred the entire JAJU business held by Shinsegae International to Shinsegae Casa. The transfer price was 94 billion won. Under the new structure, Shinsegae International will focus on fashion and beauty, while Shinsegae Casa will be developed as a lifestyle affiliate covering furniture and household goods.
The personnel structure also reflects the direction of the reshuffle. Kim Hong-geuk, CEO of Shinsegae Casa, had also served as head of Shinsegae International’s beauty and lifestyle division following last year’s regular executive appointments. After JAJU was transferred to Shinsegae Casa, he stepped down from his Shinsegae International role and began focusing solely on Shinsegae Casa. The structure has been reorganized so that one leader oversees the integrated operation of JAJU and Casa.
By bringing in JAJU, Shinsegae Casa broadened its growth base. JAJU’s everyday product categories, including bedding, kitchenware, storage and household goods, complement Casamia’s existing space-oriented product lineup, expanding Casa’s overall portfolio.
The move also aligned with consumer trends that emphasize practicality and quality. Expansion of online and offline channels and the launch of new brands targeting customers in their 20s and 30s also contributed to improved performance. Strategic channel operations, including showrooms for premium sleep brand Materasso and compact JAJU stores, provided further support.
After separating JAJU, Shinsegae International reorganized itself as a fashion and beauty specialist. In the first quarter, sales in the imported fashion division rose 35.2 percent from a year earlier. Growth was led by brands such as Brunello Cucinelli, Rick Owens, UGG and Herno. The cosmetics division posted 124 billion won in sales, setting a new quarterly record. The imported cosmetics division also grew 20 percent, supported by demand for niche fragrances and luxury beauty brands such as Diptyque and Loewe Perfumes.
Casa Focuses on Scale, International on Fundamentals
This year, Shinsegae Casa plans to focus on strengthening the premium sleep category centered on Materasso, as well as JAJU’s household goods, fabric and homewear categories. It will also expand online channel competitiveness and broaden the business area of Cucinella, its high-end customized furniture brand.
Shinsegae International plans to continue the strong performance of imported brands and cosmetics growth, while placing weight on strengthening brand competitiveness and expanding in global markets.
A Shinsegae Casa official said, “The inclusion of the JAJU business has created an external growth effect, and the existing Shinsegae Casa business and JAJU business grew together, positively affecting first-quarter performance.”
“We will expand business synergies by strengthening the premium sleep category centered on Materasso and JAJU’s household goods, fabric and homewear categories,” the official said.
A Shinsegae International official said, “The first quarter was a period when the joint growth of core businesses and the effect of business structure improvement appeared together, marking the full start of earnings improvement.”
“We will enhance both growth and profitability by strengthening brand competitiveness and expanding in global markets,” the official said.
- This article was translated by ChatGPT. (이 기사는 챗GPT가 번역했습니다.)
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