Boy band helps a beleaguered firm turn around
In early 2019, Kyung Nam Pharm, one of South Korea’s oldest pharmaceutical companies, ran the risk of being ousted from the country’s stock market on suspicion of accounting fraud.
Understandably, the Seoul-based company also struggled to find its feet in terms of performances in the first quarter of 2019 when it suffered a loss.
Just a year later, the 62-year-old firm, which is famous for its vitamin supplement brand Lemona, managed to turn around in the first quarter of this year by chalking up a profit. Plus, its sales also jumped 75 percent year-on-year.
What happened to Kyung Nam?
It has adopted a smart strategy of signing an advertisement contract with K-pop superstar BTS late last year. Thereafter, the outfit continues to fare well both in top line and bottom line.
For example, Kyung Nam came up BTS-version Lemona products last December, which sold out in just two hours after release.
CJ Logistics, the country’s leader in the logistics industry, said that the delivery of Lemona almost doubled last December from a year ago.
CJ Logistics also said that last year’s delivery of BTS-related goods jumped more than three times compared to 2018.
BTS is a seven-member boy band, which is very popular across the world. The idol group dropped its fourth studio album “Map of the Soul: 7” this February to gain global attention.
The vocal group was scheduled to have a world concert tour, but the novel COVID-19 coronavirus forced the septet to cancel the much-awaited event.
Instead, the group has demonstrated its performance through YouTube and other online channels. It also has signed a number of advertisement contracts.
BTS debuted in 2013. It was established by Big Hit Entertainment, which plans to go public later this year. Optimists estimate that Its value would reach $5 billion.