Wontech, a leading medical solutions company specializing in laser and energy-based technologies, is set to make a significant splash in the home beauty device and medical cosmetics markets with its flagship radiofrequency (RF) lifting equipment, Oligio.
The company announced on Thursday that it has secured a substantial investment of 750 billion KRW (approximately 499 million USD) through a strategic partnership with PACM Private Equity and PACM Asset Management, utilizing convertible bonds (CB).
This investment is more than just a financial boost; it represents a strategic collaboration aimed at jointly developing the home aesthetic and consumer beauty markets. The convertible bonds include safeguards to protect existing shareholders’ interests, such as a company buyback option.
Wontech plans to leverage this investment to pivot from its current business-to-business (B2B) model focused on hospitals and clinics, to a more consumer-centric business-to-consumer (B2C) approach.
The company will strategically allocate funds to develop and mass-produce home beauty devices, create a comprehensive medical skincare line, implement global brand marketing strategies, and establish distribution channels both domestically and internationally. This expansion will be facilitated by PACM’s extensive consumer goods distribution network and global marketing reach.
At the heart of this strategy is the consumer branding of Oligio’s intellectual property (IP). Oligio, Wontech’s premier RF lifting equipment, has already gained traction in over 80 countries.
Building on its established reputation and clinical success in the medical treatment sector, Wontech has initiated the development of home beauty devices and medical cosmetic products. The company is also fostering collaborations with leading domestic cosmetics original design manufacturer (ODM) firms to bolster its offerings.
The company’s first foray into the home care market will be Oligio Home. Wontech aims to establish robust sales channels through its domestic consumer goods network and plans to enlist global brand ambassadors. This move is designed to extend the brand’s presence from clinical settings to everyday consumer touchpoints.
A Wontech spokesperson emphasized that this new venture represents a pivotal shift in the business model, expanding the Oligio brand from B2B to B2C. It has meticulously crafted a comprehensive strategy encompassing product development, distribution, and marketing, positioning them for a swift and impactful market entry.
The spokesperson further added that the goal is to leverage the trust they’ve built in the medical device sector and apply it to the cosmetics industry. It’s aiming to emerge as a global brand powerhouse that embodies the competitive edge of K-beauty.
In its financial report, Wontech posted impressive first-quarter results, with consolidated sales reaching 40.2 billion KRW (about 26.8 million USD), marking a 7.6% year-over-year increase from 37.4 billion KRW (about 24.9 million USD). The company’s gross profit surged to 28.6 billion KRW (approximately 21 million USD), representing a substantial 19.1% increase from the previous year’s 24 billion KRW (about 16 million USD). Notably, the gross profit margin saw a significant improvement, climbing to 71.1% – a 6.9 percentage point increase from the previous year’s 64.2%.