Premium New Product Launch Ahead of Year-End Demand
The furniture industry is focusing on premium products. This is to target consumers who do not hesitate to open their wallets for premium products even amid an economic downturn.
According to the furniture industry on the 30th, each furniture company is accelerating the launch of premium new products. The strategy is to maximize profits with high-priced products while aiming for year-end demand. In the furniture industry, products that emphasize luxury by using imported raw materials and undergoing artisan processes are classified as premium lines. These products can be priced more than twice as much as regular products of the same type.
Hanssem recently launched the recliner sofa ‘Eopon’ home bar type and the fabric sofa ‘New Infinity Mode.’ Both lineups are existing popular products that have been newly introduced with improved design and functionality. The price range is around 2 million won, classifying them as premium products.
Hyundai Livart also released ‘The Majes,’ an upgraded version of the bestseller sofa ‘Grandioso,’ this month. This product uses the highest quality Italian natural leather, and the 4-seater version costs about 3 million won. Shinsegae Casa also accelerated competition in premium products by introducing the premium sofa ‘Campo Family.’
Premium products are playing a significant role in the struggling furniture industry. An industry insider explained, “Due to the construction market slump and prolonged economic downturn, purchasing power for mass-market products is declining. Nevertheless, consumption of premium products is steadily increasing, so we are focusing on developing related products.”
In fact, looking at the third-quarter performance this year, each company recorded solid results despite the economic downturn. Hyundai Livart posted an operating profit of 9.8 billion won in the third quarter, more than seven times higher than the same period last year. During the same period, Hanssem’s operating profit was 7.3 billion won, up 48.1% year-on-year. Shinsegae Casa also succeeded in turning a profit with an operating profit of 200 million won.
Each company plans to continue its premium strategy. Hyundai Livart has been focusing on premium strategies since last year. After consecutively launching global top luxury brands exclusively in Korea, it recently introduced the ‘Rocket Installation Furniture Hall’ in collaboration with Coupang. The strategy is to expand consumer access to premium products through Coupang’s ‘Rocket Installation’ service, which allows next-day delivery. Hanssem and Shinsegae Casa also plan to continue brand premiumization by strengthening their premium product lineups and improving both online and offline stores.
An industry insider said, “The fourth quarter is the traditional peak season for the interior and furniture market, with concentrated events such as moving, weddings, remodeling demand, and large-scale exhibitions,” adding, “We expect profitability improvement centered on premium products.”
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