Hanssem Recovers 2 Trillion Won in Sales... Rehouse's 'Power of Win-Win'

Half of Nationwide Dealerships Are Win-Win Stores, Operating Without Interior and Management Cost Burdens

Hanssem Design Park Yongsan I'Park Mall Branch. It is a collaborative store where 11 dealerships operate.
[Photo by Hanssem]

[Asia Economy Reporter Kim Jong-hwa] 'Recapturing sales in the 2 trillion won range.' The furniture industry expects Hanssem to easily achieve sales of 2 trillion won this year as it rapidly advances, fueled by the success of 'Rehouse.' Hanssem's sales had been declining since first reaching the 2 trillion won mark (2.0635 trillion won) in 2017, but have sharply risen this year.

Hanssem's sales in the first half of the year recorded 1.0098 trillion won, an 18.3% increase compared to 853.4 billion won in the same period last year. Operating profit rose 48.8% to 40.1 billion won. The reason behind this growth, seemingly mocking the worst recession caused by COVID-19, is 'Rehouse.'

Rehouse is Hanssem's unique brand offering a total service product that covers everything from space package product planning, consultation, design, measurement, estimation, construction, to after-sales service (AS). Rehouse has become a proper noun that encompasses all interior-related terms such as 'interior remodeling' and 'total interior.' In fact, the number of Rehouse sales in the first and second quarters of this year increased by 286% and 201%, respectively, compared to the same periods last year.

The term that first comes up when citing the secret to Rehouse's success is 'Sangsaeng Store' (Win-Win Store). Sangsaeng Stores are large-scale stores ranging from 660 to 1300 square meters, which individual dealerships (partners) find difficult to own. The headquarters prepares these stores, and 5 to 10 dealerships operate together within them.

Although there are slight differences by store, Hanssem covers most of the operating and interior costs, so dealerships can operate without the burden of rent or interior expenses. They can directly showcase professionally arranged furniture and actual interior setups in spacious areas to customers.

As of the end of June, 290 dealerships have entered 26 Sangsaeng Stores nationwide. More than half of the total 510 Rehouse dealerships operate within Sangsaeng Stores.

Kim Jung-won, CEO of Living Gallery, who has been thriving since entering the win-win store after running a small household agency (far left).
[Photo by Hanssem]

Kim Jeong-won, CEO of Living Gallery, who operated a small dealership in Anseong, Gyeonggi-do, and moved to the Suwon Standard Sangsaeng Store, said, "The headquarters accurately understood customer demand and executed it through Rehouse." He added, "I work with nine RDs (Rehouse Designers), and the well-trained RDs supported by the headquarters are a great help." Kim was recommended by Hanssem to enter the Sangsaeng Store, and in the third year of operation, he is achieving average monthly sales of 500 million won.

Ultimately, the Sangsaeng Stores prepared by Hanssem became a stage where dealership owners and RDs, who had the capability but lacked opportunities, could showcase their talents, and for Hanssem, it was a display of foresight.

The 'Style Package,' which allows customers to select construction, furniture, and household goods all at once according to family composition and personal taste, is another reason customers confidently choose Rehouse. Moreover, by including after-sales service (AS), which small-scale interior businesses had not provided, the package alleviated customer concerns.

After launching the Style Package, which offers various packages and peace of mind even after construction, 426 sets were sold in the first quarter of last year, followed by 2,394 sets in the first quarter and 3,228 sets in the second quarter of this year. Accordingly, Hanssem has set a goal to sell 10,000 sets monthly within three years across all Rehouse products, including the Style Package.

Another secret to Rehouse's success lies in 'RD training.' Newly hired RDs at dealerships or headquarters undergo a 4-5 week RD training course. They receive education on specialized knowledge of kitchens, bathrooms, storage, building materials, basics of design, consumer consultation methods, and etiquette, transforming into interior experts.

Industry insiders have admired, "Hanssem's RD training program is a unique education system that turns non-experts into interior professionals." Currently, 2,001 RDs are active at Rehouse dealerships nationwide, and Hanssem is continuously recruiting and training to increase the number to 2,500 within this year.

A Hanssem official said, "As the industry leader, nurturing talented personnel is also our role," adding, "The Rehouse division is a next-generation core business. Based on our unrivaled competitiveness, we will solidify our position as a market-leading operator."