Solve Remodeling at Once from Furniture to Building Materials
This Year's 'Super' Package Popular at 20% Lower Price Compared to Before
[Asia Economy Reporter Kim Cheol-hyun] Hanssem's core business, 'Rehouse,' continues to achieve high growth despite the adverse impact of the coronavirus disease (COVID-19). This business, which offers a one-stop solution for home remodeling projects ranging from furniture to building materials, has seen product sales more than double compared to last year. Although the overall economy has been sluggish due to COVID-19, demand for 'home decoration' has actually become more active.
According to Hanssem on the 21st, the total number of Rehouse package sales in the first quarter of this year increased by 286% compared to the same period last year. In April, sales continued to grow by 200% compared to the previous year.
◆Effective Sales Strategy with the 'Super' Package = Hanssem cited the popularity of the new product 'Super,' launched this year, as one of the factors behind the high growth of the Rehouse business. Introduced in February, the Super package emphasizes a reasonable price of around 990,000 KRW per pyeong (approximately 3.3 square meters). This price is about 20% lower than existing package products. Thanks to this price competitiveness, even in March, when COVID-19 was spreading rapidly, the number of Super consultation requests on Hanssem's online mall, Hanssem.com, increased by about 40%. A Hanssem official explained, "The Super package mass-produces standardized products in the most popular white and gray color items in the interior market, maintaining excellent quality while lowering prices."
The industry analyzes that the increase in time spent at home due to the spread of COVID-19 has heightened interest in home decoration, which has influenced the rise in demand for residential space remodeling. Hanssem explained that the increase in partial remodeling, such as kitchens and bathrooms, as well as full-package remodeling of entire homes, is evidence of this trend.
Moreover, the volume of housing transactions, which is directly linked to remodeling demand, is also on the rise. According to the Ministry of Land, Infrastructure and Transport, housing transactions in the first quarter of this year increased by 124.2% compared to the same period last year. Although outdoor activities were frozen due to social distancing measures amid the COVID-19 spread, housing transactions were active during the spring moving season.
Hanssem offers a virtual reality (VR) service on its online platform Hanssem.com, allowing customers to virtually experience the new Hanssem Rehouse Style Package products for the 2020 spring and summer season.
◆Strengthening Hanssem's Rehouse Business = In response, Hanssem plans to implement multifaceted strategies to further strengthen its Rehouse business momentum. First, to increase sales per Rehouse agency and improve store revenue, Hanssem is hiring and training 'Rehouse Designers (RD),' professionals specialized in interior design. Hanssem aims to secure a total of 2,500 expert RDs. These designers handle customer consultations, design planning, and construction supervision necessary for interior remodeling at Hanssem Rehouse agencies. A package interior design and consultation manual has also been established for this purpose.
Hanssem is also enhancing customer services by adopting the latest information and communication (IT) technologies, including its exclusive 3D design service 'Home Planner' and virtual reality (VR) content. A representative example is the VR service provided this spring and summer season for three new Hanssem Rehouse style package products on the online Hanssem.com. Customers can vividly explore remodeled spaces such as entrances, living rooms, bedrooms, and kitchens in a virtual 3D environment.
Hanssem plans to continuously expand its win-win standard stores, which are fully remodeled showrooms. The goal is to increase the number from the current 26 to 50 this year. These win-win stores are a concept where Hanssem headquarters directly leases stores to create exhibition spaces for products and interiors, allowing agency owners to move in, showcase to customers, and conduct sales. A Hanssem official emphasized, "To strengthen competitiveness in the Rehouse business, we will enhance the lineup of new furniture products according to recent consumer trends and improve the quality and shorten the process of interior package construction through a direct construction system for all stages."
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