B2B Interior Market
Emerging Powerhouses Dawon & Company and RSquare Design
Continued Growth Expected in B2B Interior Market
Recent changes have occurred in the previously quiet B2B interior design industry. Kukbo Design, which had maintained the number one position in the industry based on sales for 10 years since 2012, was pushed down to second place after a decade, while Dawon & Company and RSquare Design rose to the top ranks.
On the 4th, visitors at COEX in Gangnam-gu, Seoul, attending the 'Seoul International Furniture and Interior Industry Fair' are looking around various furniture and interior accessories. Photo by Dongju Yoon doso7@
The size of the interior design market in South Korea reached 24 trillion won as of 2019. It is estimated that residential interiors account for 13 trillion won and non-residential interiors for 11 trillion won. Although the market sizes for residential and non-residential interiors are similar, residential interior companies such as Hanssem and Hyundai Livart are familiar to consumers, whereas B2B companies specializing in office and commercial facility interiors are less known. This is because there has been little change in the industry structure and the growth rate of companies has not been explosive. This contrasts with Hanssem, which achieved 1 trillion won in sales in 2013 and grew into a 2 trillion won company in just four years by 2017.
However, a shift in the industry structure has occurred in the B2B interior design sector. Kukbo Design, which had held the top sales position for 10 years since 2012, was pushed down to second place, while Dawon & Company and RSquare Design entered the upper ranks in sales.
Dawon & Company, showing rapid growth, recorded sales of 393.9 billion won on a consolidated basis last year. RSquare Design, established in 2016, surpassed long-established companies to rise to fourth place in the industry in just six years. Considering that the industry is centered on business-to-business transactions and has seen little change, this growth is remarkable.
Founded in 1995, Dawon & Company has traditionally engaged in interior and remodeling businesses. In 2021, it established the Residential & Resort Business Division, and last year, it set up the Commercial & Exhibition Business Division.
RSquare Design has grown through the ‘one-stop solution’ of proptech company RSquare. When companies lease offices through RSquare and then entrust RSquare Design with the interior work, they can reduce costs related to vendor search and quotation processes. RSquare Design started its business focusing on small and medium-sized offices and expanded into hotels, retail (commercial facilities), remodeling, and new construction.
More changes are expected in the B2B interior market going forward. Despite the economic downturn, companies have no choice but to focus on spatial composition to strengthen brand identity for differentiation and attract new consumer groups. Additionally, the demands of employees for new work environments are also increasing.
An RSquare representative said, "In the future, Dawon & Company and Kukbo Design are expected to fiercely compete for the number one position, and Eunmin SND and RSquare Design are also expected to expand their presence."
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