Intense Competition in Professional Brands Draws General Furniture and Goods Companies
"Chairs Are Science, Customers Realize the Need for Good Chairs and Purchase"
[Asia Economy Reporter Kim Jong-hwa] The "chair war" that began with the full-scale spread of remote work due to the COVID-19 pandemic is expanding.
Remote workers, who have realized the discomfort of chairs while working long hours at home, are switching to comfortable chairs that enhance work efficiency. As a result, specialized chair companies like Sidiz and Duoback, furniture companies such as Hanssem, and various small-scale chair manufacturers are fiercely competing to capture consumers' hearts.
The industry estimates the domestic chair market size to be around 500 billion KRW. An industry insider said, "Besides specialized chair brands, the market for custom-made chairs is growing, making it difficult to grasp the exact market size, but it is estimated that specialized companies form a market of about 350 billion KRW, while general furniture companies and other small-scale manufacturers make up about 150 billion KRW."
There are five specialized chair companies competing: Sidiz, Duoback, Patra, Bestool (formerly Buho), and Dawon. These companies recorded sales of 348.5 billion KRW last year. Among them, Sidiz posted 227.4 billion KRW, holding an overwhelming market share of 65.3%, ranking first. Duoback follows with 44 billion KRW (12.6%), Patra 40.2 billion KRW (11.5%), Bestool 29.1 billion KRW (8.3%), and Dawon 7.6 billion KRW (2.2%).
In particular, Sidiz's steep growth is noteworthy. Sidiz recorded sales exceeding 200 billion KRW for the first time last year, and in the first quarter of this year, sales reached 69.7 billion KRW with an operating profit of 5.8 billion KRW, growing 26% and 36% respectively compared to the same period last year. In the second quarter, sales were 62.6 billion KRW with an operating profit of 5.1 billion KRW, continuing the upward trend.
A Sidiz representative said, "As remote work becomes established, the response to home office furniture that can improve work efficiency is positive," adding, "DIY products like 'Tap Plus,' which can be assembled directly without a technician's visit due to the trend favoring non-face-to-face transactions, and products with simple and neat designs such as 'T50Air' and 'T40' have become steady sellers."
The counterattack from general furniture companies is also formidable. Hanssem, the number one furniture company, is targeting the market with chairs for children's rooms and studies. Sales of children's room chairs increased by about 80%, and study chairs by about 70% compared to the same period last year. Products that allow adjustment not only of chair height but also backrest depth and armrest height are popular. Koas, widely known for supplying chairs for the 2010 Seoul G20 Summit, saw online chair sales grow 700% year-on-year in the first half of this year.
A Hanssem representative said, "Usually, sales for children's rooms peak from January to March during school admission preparation, but last year, when COVID-19 was rampant, sales started to increase from April, reached the highest in December, and the upward trend has continued since then."
Premium baby product specialist Stokke's Tripp Trapp and Ableu's Curble Chair, known as Son Yeon-jae's chair, have emerged as dark horses. The Tripp Trapp, a baby chair from the Norwegian baby product brand that became a subsidiary of the game company Nexon, has surpassed 12 million units sold globally as of June last year since its first launch in 1972, becoming famous as a chair that sells one every two minutes.
Tripp Trapp was first imported to Korea in 2006. Domestic sales increased by 123% last year compared to 2019, and it ranked third in global sales following the U.S. and Germany in the first half of this year, continuing its strong momentum. A Stokke representative said, "It is surprising that Korea, with a smaller population and lower birth rate compared to other countries, ranks third in global sales."
Ableu's 'Curble Chair' sold 8 million units since its launch in 2018, supported by customers in their 40s and 50s despite the drawback of being an auxiliary chair. [Photo by Ableu]
Ableu's Curble Chair has sold over 8 million units since its launch in 2018, despite drawbacks such as being an 'auxiliary chair' or a 'chair on a chair,' as consumer demand for maintaining back health has increased. Its main customers are people in their 40s and 50s, and it is gaining attention as a 'support chair for correct posture' and an 'essential item for remote work.' Sales in January and February this year increased by 56.5% compared to the same period last year, showing an upward trend.
An industry insider analyzed, "There was a time when the slogan 'bed is science' was popular, but chairs are the true science," adding, "The result of researching and applying what customers need and helping them realize the necessity of good chairs is reflected in the sales."
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