Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Korea Stock Exchange  >  Samsung Electronics Co., Ltd.    A005930   KR7005930003

SAMSUNG ELECTRONICS CO., LTD.

(A005930)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

In Shenzhen, the world's largest electronics market gets a cosmetics makeover

11/19/2020 | 01:00am EST
Delivery men take a break outside a closed electronics market in Shenzhen's Huaqiangbei area

SHENZHEN, China (Reuters) - It's 10 p.m. in the world's largest electronics market, and lines of delivery workers who once hauled computer components and knock-off phones now push carts overflowing with Mac lipsticks, Bioderma cleansers and other foreign beauty brands.

The electronics sellers for which Huaqiangbei is famous have mostly gone home, but the wholesale cosmetics merchants crammed into 1,400 stalls in the sprawling market's Mingtong mall will be working until 2 a.m. to meet booming demand.

"It doesn't matter what promotions are happening, it's this busy every night," a seller surnamed Ying said on a recent weeknight.

Ying opened her cosmetics stall three months ago, part of a sudden makeover at the landmark electronics market in this famously entrepreneurial city.

Huaqiangbei is home to dozens of multistorey malls housing about 38,000 businesses that historically sold microchip reels and other components. It is also a matchmaking hub for global companies looking to get things made in nearby factories.

But rents are rising as its once-unruly markets gentrify, with increasingly upscale malls and 5G "experience centres" now lining its tidied roads, reflecting Shenzhen's upward mobility from a manufacturing and trading hub to what China sees as the sleek and prosperous equivalent of Silicon Valley.

Where many of the market's stalls once sold knock-off Apple and Samsung products, vendors have been squeezed by affordable local brands like Xiaomi and Vivo and stricter IP laws. For many, the easiest move was to get out of electronics altogether.

"We used to just sell phone parts, but by 2016 some of the markets were 50% vacant, so we needed to try something else to survive," said Lin Muxu, general manager of the Mingtong Digital City market, who has worked in Huaqiangbei for 15 years. "We saw there's great demand for beauty products, whether it's teenagers, women, men in their 60s and 70s."

THE BEAUTY OF BEAUTY

Chinese consumers have a growing appetite for cosmetics, with sales worth 256.9 billion yuan ($39.26 billion) from January to October, up an annual 5.9%, official data show. In the same period, overall retail sales dropped 5.9%.

Although Mingtong had hosted a smattering of cosmetics dealers for several years, the business took off this year when border closures halted the flow of traders going to Hong Kong and picking up tax-free goods for resale, several wholesalers said.

"For importers with the right licenses, we can buy in bulk here and sell products at a few cents' markup each," said a trader named Scott, declining to give his full name, worried he would get in trouble with security staff for speaking to a journalist.

"It's a bit of a gray area," he said, noting that not all sellers declare their imported goods or go through proper channels.

Some buyers at the market purchase items in small batches to sell on Chinese e-commerce sites such as Alibaba's Taobao.

"It's a few at a time, but we're moving such volumes that there's a good profit to be made," Scott said.

Seller Eva Zhou said all her European cosmetics were genuine, though near the end of their shelf lives. She worries that as more sellers flock to the market, margins will be squeezed further.

"I think a lot of people have lost their jobs with the virus, and now there's good money to be had here, but it won't work if everyone is doing it," she said.

(Reporting by David Kirton; Editing by Tony Munroe and Gerry Doyle)

By David Kirton


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. -1.37% 127.14 Delayed Quote.-4.18%
SAMSUNG ELECTRONICS CO., LTD. -3.41% 85000 End-of-day quote.4.94%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) 0.20% 6.4934 Delayed Quote.-0.35%
XIAOMI CORPORATION 2.05% 29.9 End-of-day quote.-9.94%
All news about SAMSUNG ELECTRONICS CO., LTD.
11:11aTrump admin slams China's Huawei, halting shipments from Intel, others -sourc..
RE
10:26aSAMSUNG ELECTRONICS : - Galaxy S21/S21+ Connect Share and Make Everyday Epic
AQ
10:26aSAMSUNG ELECTRONICS : Galaxy S21 Ultra the Best of Samsung's Best Features Make ..
AQ
09:12aGLOBAL MARKETS LIVE: Deliveroo, Zurich Insurance, Bayer…
07:34aSamsung Is Without a Leader as Jay Y. Lee Returns to Prison -- Update
DJ
06:19aMARKET CHATTER : Samsung Electronics Introduces Galaxy S21 Series
MT
05:33aSAMSUNG ELECTRONICS : heir Lee returns to familiar prison after ruling
RE
05:09aSamsung Vice Chairman Sentenced To Jail On Bribery, Embezzlement Charges
MT
04:49aMARKET CHATTER : RCI Financial Services Korea Launches New Mobile App to Assist ..
MT
04:48aUPDATE1 : Samsung Group chief detained in S. Korea after sentenced to prison
AQ
More news
Financials
Sales 2020 235 928 B 213 B 213 B
Net income 2020 26 667 B 24,1 B 24,1 B
Net cash 2020 93 685 B 84,7 B 84,7 B
P/E ratio 2020 21,0x
Yield 2020 2,02%
Capitalization 568 819 B 516 B 514 B
EV / Sales 2020 2 411x
EV / Sales 2021 2 172x
Nbr of Employees -
Free-Float 82,9%
Chart SAMSUNG ELECTRONICS CO., LTD.
Duration : Period :
Samsung Electronics Co., Ltd. Technical Analysis Chart | A005930 | KR7005930003 | MarketScreener
Technical analysis trends SAMSUNG ELECTRONICS CO., LTD.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 39
Average target price 97 820,51 KRW
Last Close Price 85 000,00 KRW
Spread / Highest target 48,2%
Spread / Average Target 15,1%
Spread / Lowest Target -29,4%
EPS Revisions
Managers and Directors
NameTitle
Hyun-Suk Kim Co-President, Co-CEO & Director
Dongjin Koh Co-President, Co-CEO & Director
Kinam Kim President, Co-CEO & Director
Tae Moon Roh Co-President & Head-Research & Development
Jae-Wan Park Chairman
Sector and Competitors
1st jan.Capitalization (M$)
SAMSUNG ELECTRONICS CO., LTD.4.94%534 337
APPLE INC.-4.18%2 138 910
XIAOMI CORPORATION-11.75%95 106
WINGTECH TECHNOLOGY CO.,LTD15.95%22 054
MERRY ELECTRONICS CO., LTD.-7.17%1 017
FOCUSRITE PLC-8.28%776