"Overcoming Crisis Together"... Hansem's 'Win-Win Model' in Focus

Hanssem Introduces Industry-First 'Win-Win Store' in Furniture Sector... Community Over Competition

At Hanssem Kitchen & Bath Lotte Mall Eunpyeong Branch, Jeon Seok-won, CEO of Ellim Design, is explaining the Phoenix material to a customer.
[Photo by Hanssem]

[Asia Economy Reporter Kim Jong-hwa] Recently, as "co-prosperity (相生)" and mutual growth have become hot topics in the industry, Hanssem, the number one company in the furniture industry, is drawing attention with its "co-prosperity stores."

In the case of individually operated interior stores, they are run on a small scale, so product introductions to customers mainly rely on brochures. To directly show spaces and furniture to customers, the store must be very large and have many display products, which relatively incurs high costs.

However, customers who want to renovate their interiors despite considerable burdens tend to avoid such small-scale stores. Customers want to carefully examine the texture of materials, whether there are any inconveniences when opening and closing doors, and other details before choosing products or systems. It is difficult to decide based on brochures alone.

Hanssem's co-prosperity stores satisfy these customers and also satisfy franchise owners who cannot afford to set up large stores due to lack of funds. Hanssem's headquarters directly leases large stores to display products and introduced an industry-first method where multiple franchise owners jointly operate and meet customers.

This approach considers the reality of franchises that want to open large stores in major commercial areas but lack the conditions such as costs and manpower. When franchise sales increase through co-prosperity stores, customer satisfaction from directly experiencing products rises, which leads to increased franchise sales and subsequently higher headquarters sales, resulting in satisfaction for all parties.

In April, Hanssem established a Kitchen & Bath co-prosperity showroom at Lotte Mall Eunpyeong, the largest complex mall in the northwest Seoul commercial district with heavy foot traffic, and then opened a Hanssem Kitchen & Bath co-prosperity showroom at Incheon Square One Yeonsu branch. The showroom, which realistically implements kitchen and bathroom interiors based on Hanssem's 50 years of know-how, hosts 6 to 7 franchise stores that provide customer consultations.

Jeon Seok-won, CEO of "Elim Design," which is located in Hanssem Kitchen & Bath Lotte Mall Eunpyeong, said, "Overall, the costs that individual owners would have to bear are partially covered by Hanssem headquarters, which gathers customers, conducts marketing, and promotes the store. This support significantly reduces the burden."

Jeon added, "Employees focusing on store work rather than external site work is more efficient. Customer reactions at the store are definitely different. There are limits to explaining using catalogs or laptops, but when customers see and touch the same products that will be installed in their homes directly at the store, their understanding improves and their anxiety decreases," highlighting the advantages of co-prosperity stores.

Another notable reason for the attention on co-prosperity stores is that the headquarters pays the industrial accident insurance premiums, which are legally required for all interior construction sites and are normally paid by the franchisees, thereby reducing the burden on franchise owners.

Jeon expressed gratitude, saying, "The headquarters' responsibility for site safety has made franchise owners feel a heavier responsibility. Since the headquarters started covering the industrial accident insurance premiums, we have been telling construction workers, 'Be careful, don't get hurt,' and have been more attentive to safety than before."

At Hanssem Kitchen & Bath Lotte Mall Eunpyeong Branch, CEO Changhyun Lee of Jian & D is explaining the lift-up door to a customer.
[Photo by Hanssem]

Hanssem's co-prosperity stores have also led to a positive structural change called the "franchise community." Lee Chang-hyun, CEO of another franchise "Jian & D" located in Hanssem Kitchen & Bath Lotte Mall Eunpyeong, said the "communication" role of co-prosperity stores creates positive synergy.

Lee said, "When talking with those who prepared together or other interior owners, if you stay in this job for a long time, you inevitably develop a mindset of only focusing on your own store and commercial area. However, in the co-prosperity showroom, interacting with other owners broadens your perspective."

He emphasized, "Since the franchise stores work in the same place, they have the mindset of 'We belong to the co-prosperity showroom' and recognize each other not as competitors in their own commercial areas but as a community."

A Hanssem official stated, "Since Hanssem introduced the co-prosperity store for the first time in the industry, it seems that competitors are also adopting it. As an industry leader, we will continue to seek co-prosperity measures that can produce positive effects."

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