Seoul National University Economics Graduate, Finance and Manufacturing Expert
Volvik Returns to Normal Track Management in 8 Months
Last Year's Sales 49.1 Billion KRW, Focused on MZ Generation Targeting
"I believe that crisis is an opportunity."
This is the mindset of Hong Seung-seok, CEO of Volvik. He was appointed last March as the new firefighter for the struggling Volvik. Within eight months, he demonstrated management skills that brought the company back on track. However, in November last year, Volvik's first factory in Eumseong, Chungbuk, suffered a fire disaster. In an interview with Asia Economy on the 6th, CEO Hong said confidently, "An unexpected fire occurred, causing short-term difficulties and regrets," but added, "I see it as a greater opportunity to create even more perfect products."
Hong Seung-seok, CEO of Volvik, expressed his ambition to "lead the golf industry by focusing on selection and concentration, targeting the MZ generation, and concentrating on the premium market." [Photo by Volvik]
CEO Hong had no prior connection to the golf industry. He graduated from Seoul National University with a degree in economics and held positions at Samsung Electronics, Long-Term Credit Bank, CEO of Solbrain Savings Bank, and Vice President of ZENIX. His deep passion for golf began after Se-ri Pak's barefoot victory at the 1998 US Women's Open. Hong recalled, "I was moved watching it on TV. It was so impressive," and added, "Se-ri Pak's win marked the time when golf established itself as a sport. After her victory, I started playing golf seriously from 2000."
CEO Hong approaches golf sincerely. Even nowadays, he goes out to the field at least once a week to enjoy the charm of golf. His handicap is 12. His main strength is powerful long drives exceeding 250 yards. He has also recorded a hole-in-one once, back in 2012 when he was CEO of Solbrain Savings Bank, at Blue One Bomun in Gyeongju, Gyeongbuk. He recalled, "I hit a 7-iron with 140 meters left, and it went into the hole. The feeling was truly thrilling."
CEO Hong is a sports enthusiast. He enjoys baseball, soccer, table tennis, and tennis. When he joined Samsung Electronics in 1990, he even won a doubles table tennis tournament held by the group. He explained, "I liked sports from a young age and had a strong interest in the sports industry. When I heard that Volvik was struggling, I wanted to solve the problem myself, so I jumped in."
Right after his appointment, CEO Hong focused on identifying Volvik's strengths and weaknesses to devise solutions through accurate diagnosis. He said, "Even from the outside, Volvik was a company with many strengths, with excellent technology and talented employees. However, it was a bit disappointing that some parts were not properly utilized. I judged that if we solidify our fundamentals, we can become a great company."
CEO Hong brought fresh energy into the company. He made it operate systematically. He shifted the management focus from sales volume to generating operating profit. He cleared out inventory accumulated through consignment sales and increased the proportion of direct sales to build a solid management foundation. He analyzed, "When I first came, even if we worked hard, the warehouse was emptying. After eliminating consignment sales, results began to appear." Volvik recorded sales of 49.1 billion KRW last year, gradually showing results. He emphasized, "We achieved quite good results in the second half of last year, and stability was achieved in a short time."
CEO Hong is practicing selection and concentration. Regarding golf balls, instead of launching various products, he focused investment on three lines. He said, "It became an opportunity to strengthen the characteristics of products we can do well. There was also a cost reduction effect. Sales and administrative expenses reached a reasonable level. We established a financial structure capable of generating profits, enabling stable earnings." He added, "This was possible because talented young employees worked closely together. I am grateful they produced results beyond expectations."
CEO Hong is putting all his efforts into improving Volvik's image. Their internal diagnosis shows that despite high awareness, preference is low. He stressed, "Volvik's products are world-class. Turning high awareness into high preference is the key to survival." Volvik is the overwhelming number one in the color ball market. This year, they plan to actively enter the white ball segment, currently dominated by Titleist. CEO Hong intends to target younger generations rather than customers loyal to existing products. He stated, "The MZ generation (Millennials + Generation Z) is our target. I will lead Volvik's new leap with a premium strategy."
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