Expanding Business Beyond Distribution to Fashion and Living
Leading Comprehensive Lifestyle Culture Company with Annual Sales of 20 Trillion Won 'Uttuk'
[Asia Economy Reporter Jo In-kyung] On the 15th, Hyundai Department Store Group, celebrating its 50th anniversary, declared its leap toward becoming a '100-year company.' Leveraging the 'Vision 2030' announced earlier this year, the group plans to lay the foundation for sustainable growth while dedicating itself to creating shared benefits and values through virtuous cycles with society.
Jung Ji-sun, Chairman of Hyundai Department Store Group, said in his 50th anniversary commemorative speech on the 14th, "If we compress our group's 50-year history into one line, it is a continuous series of bold and passionate challenges," adding, "Based on the strength and wisdom accumulated over half a century, let us create a new history together to leap into a company that lasts 100 years or more." He also emphasized, "Let us sincerely maintain social contribution and win-win cooperation activities so that corporate growth and the pursuit of social value can create a virtuous cycle, while striving to create eco-friendly values and become a transparent and fair company."
Leap to a 100-Year Company
Hyundai Department Store Group is preparing new challenges to leap into a 100-year company. The 'Vision 2030,' which contains the group's future blueprint announced earlier this year, includes a goal to achieve sales of 40 trillion won by 2030 by adding beauty, healthcare, bio, and eco-friendly businesses to the current three core businesses of distribution, fashion, and living & interior.
To leap into a 100-year company in the future, efforts to create social value, mainly in social and environmental fields, will be expanded and strengthened into 'ESG management.' This means expanding the scope and activities of corporate social responsibility to gain strong trust from customers and establish a foundation for sustainable growth. Recently, to strengthen ESG management, an 'ESG Management Committee' was established under the board of directors, and an ESG-dedicated organization (ESG Promotion Council) directly under the CEO was newly created within the company.
The group's sales, which were only 84 million won in its founding year, reached 20 trillion won last year. The business ranking (based on assets) recorded 21st place in 2020, and the group's overall debt ratio (as of 2020) has maintained a stable financial structure at 48.2%.
Hyundai Department Store Pangyo Branch surpassed annual sales of 1 trillion won in just 5 years and 4 months since its opening last year, earning the title of 'fastest department store in Korea to join the 1 trillion won club.' 'The Hyundai Seoul,' which opened in Yeouido, Seoul, in February this year, succeeded in attracting crowds immediately upon opening, showing new possibilities and hope for the offline distribution industry.
Leading High-End Department Stores
Hyundai Department Store opened the era of 'Gangnam Department Store' in 1985 by introducing a cultural center, gallery, and performance hall inside its Apgujeong Main Store. In 1988, the Trade Center Branch established its position as a 'high-end luxury department store' by introducing the concept of shopping combined with culture and relaxation under the slogan 'Realization of Shopping Utopia.'
During the foreign exchange crisis, Hyundai Department Store adopted a counterintuitive management strategy of new store openings and mergers & acquisitions (M&A) instead of restructuring. Following the opening of Cheonho Branch in 1997, it successively acquired Ulsan Juriwon Department Store and Sinchon Grace Department Store in 1998. In the 2000s, Mia Branch (2001), Mokdong Branch (2002), and Jungdong Branch (2003) opened one after another.
In 2001, it acquired the TV home shopping business rights. The 'Vision 2020' announced in 2010 became a turning point for Hyundai Department Store Group to leap beyond distribution into a 'comprehensive lifestyle culture company.' Through large-scale investments and more than ten major M&As, it completed a business portfolio centered on three pillars: distribution, fashion, and living & interior.
In 2012, it expanded its business areas into fashion and living & interior by acquiring Korea's No.1 women's clothing company 'Hansome' and furniture company 'Livart (now Hyundai Livart)' consecutively. Hansome, which further acquired the 'SK Network Fashion Division' in 2017, adopted a premium strategy and rose to become a leading fashion specialist company in Korea. The living & interior sector established itself as an industry leader by acquiring the comprehensive building materials company 'Hanwha L&C (now Hyundai L&C)' in 2018.
In 2015, it established the rental specialist company 'Hyundai Rental Care,' and in 2016, it entered the duty-free market by acquiring duty-free business rights in Seoul. Last year, it laid the foundation for entering the beauty and healthcare business by acquiring 'SK Bioland (now Hyundai Bioland),' the No.1 natural cosmetics raw material company, and in January this year, it entered the selective welfare business by acquiring the welfare service specialist company 'Easywell (now Hyundai Easywell).'
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