'Jipkok' Kitchenware Rebound 'Happycall'... "Frying Pan Subscription Economy"

Sales Expected to Rebound This Year After 3 Years of Decline with Over 30% Increase Compared to Last Year
Growth Driven by Increased Demand for Home-Cooked Meals, Strengthened Online Sales, and Rebranding Efforts
Park Soyeon, CEO of Happycall, "Securing Young Customers and Enhancing Brand Awareness"

Happycall Gyeongnam Gimhae Headquarters Exterior View

[Asia Economy Reporter Kim Daeseop] The recent trend of 'staying home' is providing a chance for a rebound to Happycall, a kitchenware specialist company that had been experiencing declining sales over the past three years. Due to increased demand for 'home-cooked meals' amid the spread of COVID-19, a sales recovery is expected this year.

According to Happycall on the 2nd, the company recorded monthly sales of 12 billion KRW in April, marking the highest monthly sales in 15 months since January last year. The increase was influenced by more people staying home and cooking due to COVID-19, as well as a rise in product sales through online channels.

Since its establishment in 1999, Happycall has launched products such as double-sided pans, vacuum pots, and high-speed blenders domestically and internationally, reaching sales of 207.1 billion KRW in 2016. However, as growth plateaued, sales declined annually to 143.3 billion KRW in 2017, 128.3 billion KRW in 2018, and 109.1 billion KRW last year.

Recently, the company has entered a turning point by expanding its product lineup with new products and diversifying sales channels beyond home shopping. If the current upward trend continues, the company expects this year’s sales to increase by more than 30% compared to last year. Operating profit improved from 1.7 billion KRW in 2018 to 4.2 billion KRW in 2019.

The company attributes this positive performance to stable product supply through domestic production plants, strengthened online sales, rebranding efforts, and effectively turning the COVID-19 crisis into an opportunity.

Happycall manufactures products at its production plant in Gimhae, Gyeongnam Province, and most of its partner companies are domestic. Unlike competitors who faced supply disruptions due to difficulties in procuring parts from overseas amid COVID-19, Happycall was able to maintain stable production.

Happycall 'Flex Frying Pan'

Happycall reduced its home shopping sales ratio from nearly 90% to around 40%. Online sales accounted for only 10% in January last year but rose to 30% by April this year. The diversification of distribution channels improved the company’s profit structure.

Since last year, the company has actively pursued rebranding to align with the tastes and consumption patterns of younger consumers by launching various new products, marketing initiatives, and revamping its official online mall. It strengthened its product and marketing teams, established content development and production departments, increased quality and customer management personnel, and reinforced the online sales division. To enhance customer satisfaction, the number of customer center staff increased by more than 30%.

In particular, new products launched this year, such as the 'Flex Pan,' which features a design and cost-effectiveness differentiated from existing Happycall frying pans, have gained popularity. The Flex Pan sells more than 30,000 units per month. The 'Flex Pan 2' is scheduled for release this summer, and an electric kettle version of the Flex Pan will be launched in September.

Happycall exports products to 20 countries worldwide and has overseas branches in China and Taiwan. Recently, it also entered 'Qoo10,' Singapore’s largest online shopping mall.

Park Soyeon, CEO of Happycall, said, "We will actively promote the brand to increase recognition among the growing young customer base visiting Happycall," adding, "We are also considering a subscription economy model for frying pans."

This content was produced with the assistance of AI translation services.