Classys aims to become world’s top 3 beauty medical device company

Baek Seung-han, chief executive officer of Classys

Classys Inc., South Korea’s top beauty medical device company listed on the Kosdaq market, has seen explosive growth in the first three quarters of this year, surpassing 150 percent of last year’s annual revenue.

Robust sales have been led by the company’s strong sales in Brazil, which have grown at an annual average of 70 percent over the past two years, according to Baek Seung-han, chief executive officer of Classys.

With a global presence, Classys sells beauty medical devices in over 70 countries, with international sales accounting for about 70 percent of its entire revenue. Brazil alone contributes 30 percent.

Local sales in Brazil have experienced rapid growth, increasing from 9 billion won ($6.8 million) in 2020 to 13.6 billion won in 2021 and 23 billion won in 2022, Baek told Maeil Business Newspaper.

Baek outlined Classys’ ambitious expansion plans, saying that “Starting from Dubai in the United Arab Emirates, where we recently obtained approval for the Shurink Universe, we plan to expand into the Middle East markets such as Saudi Arabia in the coming year.”

“In 2025, we aim to enter key European countries, and from 2026 onward, we plan to expand our reach to the United States and China,” he added.

Highlighting the company’s potential, Baek mentioned that “at this rate, within three years, we could become one of the top three companies globally in the beauty medical device market, standing shoulder to shoulder with companies from the U.S. and Hong Kong.”

“We aim to lead the global well-aging trend, promoting healthy aging,” he said.

Despite a focus on international markets, Classys has also demonstrated clear success in Korea. It currently holds an estimated 55 percent share of the Korean beauty medical device market.

“Growth in the domestic market remains robust, with an annual growth rate of around 25 percent,” Baek said.

Classys’ flagship products include Shurink Universe and Volnewmer.

Released in 2021, Shurink Universe is the latest version of the company’s first product, the eyebrow lifting device Shurink. It utilizes ultrasound to improve elasticity in facial, abdominal, and thigh skin and subcutaneous tissue.

Baek highlighted the success of Shurink Universe, saying that within just one year of its release, global sales reached 1,600 units, positioning it as a leader in the global aesthetic market. It has garnered significant attention due to significantly reduced pain and a procedure time about 2.5 times shorter than previous products.

Baek anticipates a rising trend in the beauty medical industry, saying that “the combined treatment of Vol-rink, using both Shurink and Volnewmer simultaneously, is expected to become a trend in the beauty medical field. It is less painful, effective, and preserves volume, making it a sought-after treatment.”

Classys operates its first factory in Munjeong-dong, Songpa District, southern Seoul, and a second one in Misa-dong in Hanam, Gyeonggi Province.

The first factory, converted into a smart factory last year for production efficiency, focuses on producing devices and consumables, while the second factory is responsible for logistics.

Baek assured that even with a doubling of the current scale, the company could respond without significant investment by increasing workforce and continually implementing smart processes to enhance production efficiency.

Classys’ financial performance remains strong, showcasing resilience even in challenging economic conditions.

In 2021, the company achieved a 41 percent on-year growth in revenue, reaching 141.8 billion won, and a 33 percent increase in operating profit, recording 68.9 billion won.

The high operating margin, nearing 50 percent, is attributed to the substantial profitability from consumables, particularly cartridge sales.

“The proportion of consumable sales in domestic revenue is 53 percent, while internationally, it accounts for 42 percent. The high margin from consumables is driving an operating profit close to 50 percent,” the CEO explained.

With a positive outlook, Classys is expected to achieve strong results this year.

According to market consensus, Classys is forecast to achieve a revenue of 186.3 billion won and an operating profit of 94.9 billion won in 2023.