"The Planner Transforms with Excitement"... A Green Light for a New Leap Forward

Cheongho Group Marks This Year as the Founding Year for a New Decade
Emphasizing "Market Leadership" and "Thorough Execution"
"We Must Not Be Complacent with Market Conditions," Chairman Jeong Hwi-dong Stresses to Employees
Focusing Capabilities on Change and Innovation... Prioritizing New Product Development and Customer Acquisition

Jung Hwi-dong, Chairman of Cheongho Group

[Asia Economy Reporter Kim Daeseop] Cheongho Group is marking this year as the foundational year for a new decade. With the themes of 'market leadership' and 'thorough execution,' the group is determined to make a fresh leap forward.

According to the group on the 20th, all company resources will be focused on sales throughout the year to drive change and innovation. Cheongho Group Chairman Jeong Hwi-dong told employees, "The recent market situation warns us not to be complacent," adding, "This year, we must create conditions where those working on the front lines can work with enthusiasm."

This emphasizes that the group is a company based on direct sales. At Cheongho, over 3,500 sales and service experts, including product management specialists called 'planners,' are active.

Since the second half of last year, a new strategy to expand the planner organization has been actively implemented. Among planners belonging to existing branches, those evaluated and selected based on sales and service processing rates were given the title of 'Department Manager Team Leader' and supported with costs to establish independent offices. These leaders have the authority to hire personnel to work in the new offices independently from the branch's staffing operations.

Chairman Jeong also urged employees to "make this year the foundation for a new decade of soaring growth," emphasizing 'responsible management practice.' He stressed that for a company to survive fierce competition, it is most important that all members properly perform their assigned tasks.

Cheongho Nice, the group's core company, has been manufacturing and selling home appliances such as water purifiers, air purifiers, and bidets since its establishment in 1993. It showcased excellent technology by launching the world's first ice water purifier in 2003. Its products are also exported to over 40 countries worldwide.

However, growth at Cheongho Nice, which accounts for most of the group's sales, has stagnated. Cheongho Nice's sales decreased slightly from 384.6 billion KRW in 2017 to 375.1 billion KRW in 2018. The company explains that sales are expected to remain at a similar level last year as well.

Cheongho Nice Headquarters Building

Cheongho Group entered the rental market in April 2001. Last year, the cumulative rental accounts reached about 1.5 million. In comparison, the rental leader Coway's rental target for this year is 8 million accounts. The latecomer SK Magic also achieved 1.8 million cumulative rental accounts last year and set a goal to exceed 3 million accounts this year.

Cheongho plans to develop and introduce market-leading products that can strengthen its market competitiveness. It also plans to set response strategies in line with changes in the market environment and execute them thoroughly. The management system has also been changed. At the end of last year, Oh Jeong-won, Vice President of Cheongho Nice, was appointed as CEO, and strategies are being pursued to expand new distribution channels including online, develop new products, and secure potential customer bases.

A Cheongho Group official said, "The cumulative rental business target for this year is to surpass 2 million accounts," adding, "We will also actively pursue global market expansion through local subsidiaries in Vietnam and Malaysia."