Eilersen, the Ten-Million-Won Sofa: How a Carriage Workshop Became a Luxury Sofa Brand [Business Lab]

130 Years of Tradition: The Story of Eilersen
From Carriages to Bus Frames to Sofas
Innovation in Step With Changing Times
This Year, Launching Eco-Friendly Products Too

Editor's NoteSouth Korean companies rank second in the world for research and development (R&D) expenditure (2022) and fourth for the number of patent applications filed in the United States (2020). However, the annual average productivity growth rate of these companies dropped significantly from 6.1% between 2001 and 2010 to just 0.5% between 2011 and 2020. This decline is attributed to the slowdown in productivity growth among so-called "innovative companies" that are actively engaged in innovation activities. Without change, companies will be shunned by the market. To help the industry revive its innovation DNA, we will look at innovation cases pioneered by leading global companies. Innovative companies will be the driving force to revive South Korea's stagnant economic growth rate.

"The only thing in this house that cost more than the rent. An Eilersen sofa. I come home exhausted and pour a beer down my throat while sitting on this sofa I love."

In the popular Japanese drama "I Just Stamped the Marriage Registration," which aired in 2021, the 27-year-old female protagonist, a graphic designer, comes home and says this line. The main character, who prefers to remain single, lies on her Eilersen sofa, watching comedy videos on her tablet PC, and calls this her "greatest happiness."

The Eliason sofa featured in the Japanese drama "I Just Stamped the Marriage Registration." TBS YouTube

Although the price for a four-seater sofa exceeds 10 million won, Eilersen, Denmark's leading sofa brand, enjoys great popularity in Japan every time a new product is released. Known as a byword for luxury furniture, Eilersen has grown into a global company, expanding its factories to China and Slovakia, but it originally began as a small carriage-making business. How did a carriage shop from Skamby, Denmark, a village with fewer than 500 residents, grow into a sofa brand recognized worldwide?

Niels Eilersen, a former apprentice blacksmith who lived in a small village in southern Denmark, opened a carriage shop in 1895 at the age of 23 after years of rigorous training. Eilersen was the first in Denmark to use a unique method of bending wood with steam to make carriages. This technique, which required delicacy, was useful for making products by softening the wood until it became sufficiently flexible. As he made hunting carriages, his craftsmanship gained a reputation, and the business flourished. He took pride in making the lightest and strongest carriages in Denmark.

Niels Eilersen, the founder, is making a lounge chair. The period is estimated to be the 1930s, when lounge chairs began to be produced in earnest. Eilersen, who was an apprentice blacksmith, thought that the seating area should be comfortable while making bus frames following carriages. Eilersen official website

By the 1900s, when Eilersen's name was becoming known in the village, automobiles began to be commercialized. At the time, cars closely resembled carriages but simply lacked horses. The craftsman sensed it: he had to choose between adapting or gradually fading away.

Eilersen devised a way for his skills to avoid becoming obsolete in the changing environment. He decided to use the steam-bending technique he had employed for carriages to make frames needed for bus bodies. At that time, buses used internal combustion engines, but the passenger compartment was similar to that of a carriage. Frames such as door and window frames used inside and outside buses were mostly made of wood. As bus production increased, by the 1930s, half the population of Skamby worked at Eilersen.

A carriage displayed at the Eliasson showroom in Copenhagen, Denmark. It was made by the founder Nils Eliasson himself. Eliasson website

In 1934, just as the business had stabilized, the Eilersen factory was suddenly reduced to ashes. Due to unknown causes, a fire broke out, burning all the wood and factory lines that served as the basic materials. It was a disaster. However, Eilersen turned this into an opportunity. Instead of rebuilding with the old, outdated production methods that had burned down, he established a new factory equipped with modern methods, which laid the foundation for business expansion. During this period, Eilersen not only continued making carriages but also set up production lines for sofas with springs, dining chairs, and lounge chairs at the new factory, achieving great success.

The bus produced by Eliasson following the carriage. Eliasson official website

In the 1950s, as televisions became common in households, Eilersen began to rethink his approach. The traditional Danish way of relaxing?coming home after work, drinking coffee, and talking?shifted to gathering in front of the TV. He realized that new furniture was needed to support this new kind of relaxation. He wanted to create furniture that was both comfortable and artistically satisfying. The founder, Eilersen, reportedly always kept in mind the importance of people sitting comfortably, whether he was making carriage or bus frames.

Eilersen's sons combined their father's craftsmanship with Danish design to create sofas. They used the traditional steam-bending wood technique and gained popularity with their refined Danish design. From the 1960s onward, the founder's grandson, Jens Eilersen (third generation), became directly involved in design and helped grow the brand. Notably, products such as "Stratos" and "Baseline" were launched, gaining popularity in countries like the United States and Japan. Eilersen is now managed by the founder's great-grandchildren, representing the fourth generation.

The Bugs series, an eco-friendly sofa first introduced by Eliasson at the Three Days of Design (3daysofdesign) event held from the 18th to the 20th of last month. It reduces carbon emissions by 40% compared to previous products. Eliasson website

This year, the company launched the "Bugs" sofa series, inspired by eco-friendliness. Sustainability is the standard by which Eilersen looks ahead to the next 130 years. The Bugs series reduces carbon emissions by 40% compared to previous Eilersen sofas. It is made from Swedish wood and 100% reusable fibers. Every part of the product can be replaced, and customers can assemble it themselves.

Eilersen takes pride in considering top quality as innovation. Lisa Jensen, Eilersen's PR manager, said, "When we create new products, Eilersen never compromises on quality while ensuring comfort," adding, "Many of our products are extremely heavy, but they are made to last a lifetime."