Shinsegae Casa Acquires JAJU: "Aiming for 800 Billion Won in Sales Within 5 Years"

Reducing Reliance on Furniture, Expanding into Lifestyle and Fashion
Completing a 'Total Home Furnishing' Portfolio
Laying the Foundation for Business Expansion This Year

Shinsegae Casa has announced its transformation into a total lifestyle company encompassing all aspects of daily life by acquiring Jaju. The company plans to expand its portfolio beyond home furniture, accessories, and space design, which have been centered around Casamia, to include household goods, home fashion, and fashion. This strategy aims to drive external growth while building a business structure less vulnerable to market downturns and external variables.

On January 8, Shinsegae Casa announced that it had completed the acquisition process of the lifestyle division 'Jaju' from Shinsegae International as of December 31 of last year. The company explained, "By expanding our business domain from spaces to all aspects of daily life, we have strengthened the essence of our lifestyle business and completed a portfolio for our leap as a total home furnishing company."

Jaju Pami Station Branch. Shinsegae Casa

The industry estimates that Hanssem and Hyundai Livart account for about 20% of the domestic home furnishing market, which is valued at 20 trillion won. Both companies operate business structures that encompass the entire residential interior sector, from home furniture and accessories to kitchen furniture, building materials, and construction.

Shinsegae Casa's strategy is to establish itself as a top-tier domestic company with a market size of approximately 800 billion won by 2030, leveraging a differentiated business structure from existing market leaders. Last year, Shinsegae Casa, focusing on Casamia, achieved sales of about 270 billion won through the manufacturing and distribution of home furniture and accessories, as well as space design. With the addition of Jaju's sales performance, the company is on track to surpass 500 billion won in sales this year.

Shinsegae Casa also expects that the acquisition of the Jaju division will enable it to overcome the prolonged recession and stabilize its performance. By diversifying its business, which was previously focused on furniture, into household goods and fashion, the company aims to reduce performance volatility caused by external factors such as exchange rate fluctuations and slumps in the construction and real estate markets. Additionally, synergies are anticipated across all business areas, including product planning, distribution channels, marketing, and sourcing.

Meanwhile, starting this year, Shinsegae Casa will operate a total of six lifestyle brands and platforms: 'Casamia,' 'Materasso,' 'Cucinella,' 'Good.com,' 'Jaju,' and 'JAA.' This year will serve as a period for laying the foundation for future business expansion, with the company maintaining its current strategies and operational systems while actively working to strengthen the competitiveness of each business.

First, Casamia will solidify its market leadership by continuously expanding its best-selling Campo series and introducing new premium design product lines. Materasso plans to increase its market share by expanding its distribution channels and customer experience opportunities. Through Cucinella, the company will target niche markets in the B2C (business-to-consumer) interior construction sector to establish new revenue models, while transforming Good.com into a specialized lifestyle curation mall to enhance growth and expertise.

Jaju will expand and strengthen its product categories, including pet supplies, small home appliances, beauty, and sleep, while developing new store formats and establishing new distribution channels to grow the brand's scale. In addition, the women's fashion brand JAA will expand its offline customer touchpoints, laying the groundwork for a successful market entry.

A Shinsegae Casa representative stated, "Through this acquisition, we have not only expanded our scale but also completed a portfolio that encompasses all aspects of daily life and living spaces, establishing a solid foundation to become a leading company in the domestic home furnishing market. Going forward, we will propose differentiated value as a high-sensitivity premium lifestyle brand and reshape the landscape of the domestic home furnishing market."