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This article was integrated by Kitchen & Bath News from bizwatch and ETNEWS
Korea’s offline home camp and online platform camp are competing fiercely for the 18 trillion won (103.3 милијарди вони) indoor market.
According to bizwatch, the pandemic is changing the structure of Korea’s home furnishing industry, with the number of B2C-focused home furnishing companies growing in 2020 with the rise of telecommuting and “дома” culture and a tight housing market. Од друга страна, the number of B2B-focused home furnishing companies is growing slowly. The industry expects that the focus of the Korean home furnishing market will rapidly shift to B2C in the future.
Во 2020, Hanssem (Hanssem Home), the top-ranked company in Korea’s home furnishing industry, posted sales of 2.6 trillion won (јени 14.9 милијарди долари), нагоре 21.72% од година во година. Во истиот период, operating profit increased 66.7% до 92.9 милијарди вони (јени 530 милиони).
Hyundai Livart’s 2020 се зголеми продажбата 11.9% од година во година да 1.3846 trillion won (јени 7.95 милијарди долари). Оперативната добивка се зголеми 55.8% до 37.2 милијарди вони (јени 210 милиони).
IKEA Korea posted sales of 663.4 billion KRW (јени 3.0 милијарди долари) во претходната фискална година (септември 2019 до септември 2020), нагоре 31.8% од година во година.
Among mid-tier companies, growth was particularly strong at Emmons.co. Emmons posted sales of KRW 186.4 billion last year, нагоре 9.7% од претходната година. Operating profit turned to a profit of 7 милијарди вони.
These companies mainly operate B2C businesses. The highest sales growth rate was at IKEA Korea. The Hanssem “Rehouse” interior business grew 33.2% in sales over the past year. Во истиот период, sales of Hyundai Livart’s B2C business grew by 11.8%. Sales in the online division, the core of Emmons’ B2C business, increased 29 проценти. And growth continued in the first quarter of the year.
Hanssem reported sales of 553.1 billion won and operating profit of 25.2 billion won in the first quarter of this year. This represents a 12.3% и 46.8% increase over the previous year.
Hyundai Livart’s operating profit was 12.5 милијарди вони, надолу 15.88% over the same period, while B2C sales increased by 4.6%.
Од друга страна, B2B-focused home furnishing companies continued to decline in performance. Under the combined impact of the construction recession and the pandemic, ENEX.CO posted sales of 233.6 billion won last year, надолу 35.7% од претходната година, with an operating loss of 8.5 милијарди вони.
It is expected that the Korean home furnishing market will be restructured around B2C in the future.
According to Statistics Korea, home retail sales in 2020 will be about 10.19 trillion won (јени 58.48 милијарди долари), нагоре 23.8% од година во година, with e-commerce transactions driving the market’s growth. 5 trillion won (јени 28.7 милијарди долари) of home transactions will be traded in online stores in 2020, нагоре 43.5% од претходната година, accounting for nearly half of the overall retail market.
Hanssem is trying to penetrate beyond the home, and has transferred the function of training interior architecture experts from its Hanssem Service Center to its headquarters. The plan is to increase the number of employees to 3,000 by the end of this year.
На крајот на 2020, Hyundai Livart launched “Livart Bath,” a brand that specializes in bathroom remodeling, from sales and construction to after-sales management.
The overall size of the Korean home furnishing market is currently 13.7 trillion won (јени 78.62 милијарди долари) and is expected to reach 18 trillion won (јени 103.3 милијарди долари) од страна на 2023, with an average annual growth rate of 15%.
South Korea has maintained an annual per capita income of USD 30,000 (CNY 190,000) бидејќи 2017. In this context, analysis suggests that the pandemic has acted as a catalyst, shortening the time needed to expand the market, and the B2C home market is expected to grow even faster in the future. According to Korean media, the Korean home interior market is expected to continue to grow structurally as lifestyles centered on the home space continue to change.
