Development of 'Mubolt' Joint Type Angle Shelves
Rapid Sales Growth Over the Past 10 Years
Market Expansion Through Jungjingong's 'Online Export Joint Logistics Project'
The sales of Speedrack, a prefabricated shelving manufacturing and sales company located in Gimpo, Gyeonggi Province, have increased 14-fold over the past 10 years. Founded in 1979 as Youngjin Angle, the company has established itself as a reputable shelving manufacturer in the industry for over 30 years, growing steadily. However, there was no breakthrough in sales growth. Until 2012, sales remained at 4.4 billion KRW. Then, last year, it achieved a so-called 'quantum jump' reaching 63.5 billion KRW. The secret was research and development (R&D) and exports. We spoke with CEO Min Hyogi for more details.
On the 10th, CEO Min said, "Our top priority is customer satisfaction," adding, "We do our best to listen to customers' opinions and provide improved products and services accordingly." The reason he prioritized customer satisfaction was that it became a turning point in changing the company's structure. For over 30 years, the company focused on customers' demand for shelving that anyone could easily assemble. After years of research, Speedrack developed angle shelves that can be easily assembled and installed without bolts and nuts, and began full-scale production in 2013.
The advantage of the 'bolt-free' assembly method, which allows anyone to assemble the shelves, brought many changes to the business. It enabled the company to expand its sales channels from business-to-business (B2B) to business-to-consumer (B2C). Consumer demand arose for using angles for veranda shelves, hangers, desks, and dressing rooms, creating new revenue sources. Confirming the potential, the company expanded the market by consecutively launching new product lines such as 'Speedrack Wire·Changeup' in 2018, 'Bolt-free·Low-noise·Handy Speedrack' in 2020, and 'Home Dent House' in 2021.
Another driving force behind Speedrack's rapid growth was exports. Targeting North America, the company conducted market analysis and focused on online export sales rather than offline, emphasizing the advantages of easy assembly and convenient mobility. As a result, it achieved export sales of 9.84 million USD last year. Considering that export sales were around 1.04 million USD in 2020, this represents more than a ninefold increase in two years. This year, the company expects to take another leap forward with export sales reaching 20 million USD.
However, there were challenges in entering overseas markets. Although the company attempted to enter new markets such as Hong Kong and Spain beyond North America, logistics costs became a stumbling block. Since new orders were small in quantity and export routes limited, logistics costs accounted for a high proportion relative to sales. A decisive help in solving this problem was the Small and Medium Business Corporation's 'Online Export Joint Logistics Project.' Speedrack participated in this project for three years starting in 2021, receiving logistics cost discounts and fulfillment fee support. Based on this, the company established a foothold to enter new markets. The results were immediately reflected in performance. By 2022, the company achieved an average export growth rate of 215% over three years. It also expanded export regions to Taiwan, Spain, Fiji, and others. CEO Min said, "We plan to steadily expand sales regions this year as well," adding, "We will grow into a global company for prefabricated angles."
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