Home&Shopping Supports Marketing and Design Development Costs for SME Ableu
Sharing Achievements to Support Small and Medium-Sized Enterprise Partners Struggling Due to COVID-19
[Asia Economy Reporter Kim Cheol-hyun] Home&Shopping has started profit sharing to support small and medium-sized enterprise partners struggling due to the novel coronavirus disease (COVID-19).
Home&Shopping (CEO Kim Ok-chan) announced on the 13th that it will provide 45 million KRW for marketing and design development costs to Ableu, a specialized design product brand. On the same day, Home&Shopping held a ceremony for delivering new product design development funds at its headquarters in Gangseo-gu, Seoul, attended by CEO Kim Ok-chan and Ableu CEO Lee Myung-wook. This support is part of the partnership agreement signed with Ableu in October last year.
In particular, this support is described as a case of sharing profits with small and medium-sized enterprises whose business environment has deteriorated due to COVID-19. Home&Shopping plans to strengthen strategic partnerships with SME partners through future profit sharing and foster and reinforce mega-brand items.
Ableu's posture correction chair, the Cuble Chair, was first launched through Home&Shopping in 2019 as the first TV home shopping product and has established itself as a steady seller in home shopping. The development funds received this time will be used for new product development such as the home shopping exclusive design Cuble Chair and pillow items, as well as creating new growth models.
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Meanwhile, since its launch in 2012, Home&Shopping has implemented a performance-sharing system for excess profits starting from 2013 when it began generating profits in earnest, and has supported a total of 3.74 billion KRW to 402 partner companies until last year. A Home&Shopping official said, "Through this support, we plan to share profits with small and medium-sized partners and create a virtuous cycle structure that supports everything from new product development to launch," adding, "We will continue to devise various support measures to promote mutual growth with SMEs."
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