"Overcoming the Real Estate Slump Crisis with Premiumization"... Furniture Industry Targets 'Artsumer'

Sharp Decline in Housing Transactions Due to High Interest Rates and Economic Downturn... Cold Wave in Furniture Industry
Shinsegae Casa Renovates Seorae Village Store Collaborating with Renowned Artist
Hyundai Livart Launches 'Art & Design Project 2022'
Simmons Collaborates with Artist to Issue Industry-First NFT

Casamia Serae Village Branch Renewed in Collaboration with Global Artists.
Photo by Shinsegae Casa

[Asia Economy Reporter Kwak Min-jae] As high interest rates and economic recession cause a sharp decline in housing transactions and the real estate market downturn continues, the furniture industry is facing a severe cold wave. The furniture industry plans to target 'artsumers (art+consumer)' with a premium strategy that incorporates art into stores. Artsumers refer to consumers who seek cultural satisfaction in their consumption activities.

Shinsegae Group's furniture subsidiary Shinsegae Casa renewed Casamia Sorae Village store into an 'Art Salon' format on the 26th of last month, the first in the industry. This project innovates the Sorae Village store space into a gallery form through collaboration with renowned British artist Richard Woods. The exterior wall of the Sorae Village store is decorated with Richard Woods' representative artwork 'Holiday Home,' and the interior walls are also filled with his works. A Shinsegae Casa official said, "It was renewed into an art salon format that is not just a place to see furniture but a meeting place mediated by culture and art," adding, "In the case of the Sorae Village store, the premium strategy of collaborating with a world-class artist and operating a gallery has been effective, resulting in about a 23% increase in sales so far."

Hyundai Livart's pop-up store 'Art and Design Project 2022' set up at The Hyundai Seoul in Yeongdeungpo-gu, Seoul.
[Photo by Hyundai Livart]

Hyundai Livart launched the 'Art and Design Project 2022' in August through collaboration with global artists. The pop-up store will continue at Hyundai Department Store Trade Center branch until the 14th of next month. They partnered with seven influential artists from overseas, including the UK, Poland, Ukraine, and Spain, to showcase 22 furniture collections such as sofas, beds, and tables. The representative collaboration product 'Furniture in Motion' is the first in the domestic furniture brand to apply media art to furniture. A Hyundai Livart official said, "Demand for uniquely designed furniture is expected to remain steady," adding, "We plan to overcome the cold wave in the furniture industry through various attempts, including continued collaboration with domestic artists as well as overseas."

The reason the furniture industry is consecutively targeting artsumers and adopting premium strategies is due to the sharp decline in housing transactions caused by high interest rates and economic recession. According to the Ministry of Land, Infrastructure and Transport, the nationwide housing sales volume from January to September this year was 417,794 units, which is half compared to the same period last year (818,948 units). The furniture industry plans to respond to external adversities by targeting the premium market and innovating consumer experiences to minimize the impact of the macro environment. A furniture industry official explained, "Since demand for furniture and interior is proportional to housing transaction volume and moving frequency, the furniture industry's downturn is expected to continue due to the housing transaction cliff," adding, "This is why industry-level measures are needed to overcome the housing market slump and domestic economic recession."

Simmons has issued the 3rd series of 'OSV' NFTs.
[Photo by Simmons]

Some companies have also targeted MZ generation artsumers by collaborating with artists to issue NFTs (Non-Fungible Tokens). In September, Simmons partnered with young creative artist Cha In-cheol to present the industry's first NFT artwork. Cha In-cheol created motion art that reinterprets elements such as motion, segmentation, and coloring from Simmons Bed's brand campaign OSV (Oddly Satisfying Video) as an homage. Simmons Bed's reason for collaborating with popular artists to issue NFTs is to maximize branding impact and build a solid fandom.

A Simmons Bed official said, "The multi-platform strategy spanning digital art YouTube releases, TV, outdoor billboards, fairs, and exhibitions has extended to NFTs," adding, "We will continue to increase touchpoints with consumers through Simmons' unique digital art branding in the furniture industry."