Simmons Mansion Leads 'Virtuous Cycle of Trust' Among Headquarters, Franchisees, and Customers

Simmons Mansion Daejeon Yuseong Branch. Photo by Simmons Bed

[Asia Economy Reporter Moon Hyewon] # "I went to a Simmons Bed store to replace my old bed, and I fondly remember how the store owner accurately understood my needs and recommended the right product. When I was about to buy an additional bed, I heard that they opened another store, so I deliberately visited that location." Jeong Junyoung (pseudonym), who purchased family beds consecutively at Simmons Mansion Daejeon Yuseong Branch and Seodaejeon Branch, had become a Simmons fan before he knew it.

Both stores are operated by the couple Lee Giseok and Jo Mungyeong as store owners. Having run a Simmons dealership in Daejeon since 2012, they opened Simmons Mansion Daejeon Yuseong Branch in June last year. In December of the same year, the couple was given the opportunity to operate the Seodaejeon Branch as well, with wife Jo managing the Daejeon Yuseong Branch and husband Lee managing the Seodaejeon Branch.

Simmons Mansion is a store where the headquarters fully supports all operating costs such as rent, management fees, interior expenses, and display products. As a result, the headquarters is heavily involved, and the store owners earn sales commissions. Simmons introduced the new distribution system called Simmons Mansion last year and opened 27 stores nationwide. This year, they plan to open more than five new Simmons Mansion stores.

Dealership owners operate their stores without bearing rent or other expenses, earning commission income instead. This structure reduces initial investment costs and risks. With the introduction of this system, dealership owners who previously lacked financial power and could not fully utilize their service and sales know-how in peripheral commercial areas have been able to enter prime commercial districts. Expansion into upscale areas near large electronics stores or imported car showrooms has also become possible. Dealership owners can now focus solely on providing excellent service to customers. As the "pie" grows, both store owners and the company benefit.

The driving force behind Simmons Mansion, according to the company, is "trust between headquarters and store owners." Simmons Mansion store owners are not newly hired personnel. Existing excellent dealership owners or long-term employees who have maintained a solid partnership based on service mindset and sales performance are given priority to operate the stores. The company describes this as a "virtuous cycle of trust among headquarters, store owners, and customers."

Owners of Simmons Mansion, Lee Gi-seok (left) and Jo Moon-kyung couple. Photo by Simmons Bed

The Lee couple cited "integrity" as their greatest competitive advantage that enabled them to be selected as Simmons Mansion store owners. The couple said, "We treated everyone around us as customers with sincerity and authenticity," adding, "The company seemed to appreciate this aspect."

Leveraging their long experience in dealership management, the two store owners provide consulting to customers. As a result, both Daejeon Yuseong and Seodaejeon branches achieved monthly average sales exceeding 100 million KRW last year. Working in different commercial districts, the two store owners complement each other in customer service like a married couple, which they introduced as know-how unique to couple store owners. Regarding their transformation into Simmons Mansion store owners, Jo said, "As the stores became more specialized and upscale, customers dealt with the 'Simmons' brand itself rather than the individual store owners, which gave us a sense of responsibility, so we focused solely on sales to build trust with customers." Lee cited improved store accessibility and visibility as their competitive edge.

Lee Jeongho, Vice President of Simmons Bed, said, "Simmons Mansion ensures thorough management and training so that customers can experience the same quality of service and products at any store nationwide," adding, "The ability to achieve upscale, unified service equivalent to directly managed stores is both an advantage and a competitive edge."