Hanssem Achieves Two Consecutive Years of Profit with Strengthened B2C... Driving Growth of 'Ssaem Festa'

Positive Outlook for Future Performance Driven by Strong B2C Growth
"Impact of Flagship Shopping Event 'Ssaem Festa'"

Amid a slowdown in B2B (business-to-business) sales in the furniture industry due to the construction market downturn, Hanssem, which has focused on the B2C (business-to-consumer) sector, continues its performance recovery trend.

According to the furniture industry on the 15th, Hanssem, which recorded an operating loss in the third quarter of 2022, rebounded to a profit in the second quarter of the following year and has maintained a performance growth trend for two consecutive years. In particular, last year, operating profit increased 16 times compared to the previous year, highlighting its growth momentum.

At the center of this achievement is Hanssem's B2C strategy. Korea Investment & Securities recently forecasted in a report, "Hanssem's B2C segment sales are expected to increase by 7.3% year-on-year in the first quarter, supported by a recovery in furniture sales and an increase in housing transactions." KB Securities also analyzed, "Strong sales potential in the B2C interior segment is expected."

'Ssaem Festa' Achieves Record-Breaking Results... Driving B2C Growth

Hanssem attributes this ongoing momentum to 'Ssaem Festa.' Hanssem Ssaem Festa is the company’s flagship shopping event that encompasses furniture, interior, and living products, held simultaneously online and offline. It is a strategic event aimed at both attracting customers and increasing actual sales.

The first half Ssaem Festa, held for about a month from March 4 to 31, recorded the highest performance ever with order amounts increasing by 22% compared to the second half Ssaem Festa of the previous year. Especially on the last day of the event, the 31st, it drew attention by achieving the highest daily order amount of 2.66 billion KRW.

The average daily number of visitors and event participation rates also hit record highs. The average daily visitors increased by 20% compared to the previous event, and offline order amounts surged by 56%, demonstrating the effectiveness of the multi-channel strategy.

Ssaem Festa holds significant meaning not only for short-term sales growth but also for Hanssem’s mid- to long-term B2C growth strategy. By enhancing brand loyalty and providing opportunities to experience a diverse product range in an integrated way, it strengthens the brand experience that encompasses customers’ overall lifestyles.

Recently, home interior festa-type events timed with wedding and moving seasons have been spreading in the same industry, leading to evaluations that Hanssem is leading market trends. A Hanssem official said, "Ssaem Festa is more than a simple discount event; it is a platform that delivers Hanssem’s brand value and customer experience in a multidimensional way," adding, "We will continue to expand B2C customer touchpoints."

Seongsu-dong, Mapo-gu, Seoul, Hanssem Sangam Office Building exterior. Hanssem

Supply Chain Optimization and Efficient Cost Management... Drivers of Profitability Improvement

Another factor behind Hanssem’s successful performance rebound amid the crisis is supply chain efficiency and cost reduction strategies. Since the fourth quarter of 2022, Hanssem has continuously pursued strategic purchasing and price optimization by distribution channel, striving to improve cost ratios. As of the second quarter of last year, the cost ratio improved by 2.0 percentage points compared to the previous year.

Additionally, by strengthening high-margin product lines and focusing marketing capabilities, Hanssem met consumer demands and minimized the decline in sales. As a result, in the fourth quarter of last year, the B2C sector showed strong growth, turning sales into a 4.2% increase year-on-year. The home furnishing segment also supported B2C performance with a 9.6% growth compared to the previous year in the fourth quarter.

A Hanssem official stated, "Hanssem is not only focused on short-term sales increases but is expanding long-term customer touchpoints through a brand experience-centered B2C strategy," adding, "We will continue customer-centric growth through supply chain efficiency, strengthening high-margin products, and omni-channel strategies."