Saenghwal Gongjakso, Targeting MZ Generation Preferences with Products Born from a Fun Workplace

Interview with Kim Ji-sun, CEO of Saenghwal Gongjakso
Hundreds of billions in sales through online and word-of-mouth
"Enjoying both work and ESG management"
Full-scale expansion into overseas markets including Mongolia

Kim Ji-sun, CEO of Saenghwal Gongjakso
Photo by Tmon

"Saenghwal Gongjakso products harmonize well with any surrounding interior wherever they are placed. We pursue clean design, reasonable prices, and ingredients whose safety has been verified."

The products of Saenghwal Gongjakso, a brand specializing in daily necessities, have no decorative elements like pictures or photos on their surfaces. On a white background, there is only one witty line of black text explaining the product. For example, the dehumidifier says, ‘Gathering even the soul of moisture,’ the rubber gloves say, ‘Won't let a single drop of water touch your hands,’ and the laundry detergent says, ‘Just put it all in.’ Focusing on price, design, and quality naturally created a simple yet modern image.

Kim Ji-sun, CEO of Saenghwal Gongjakso (pictured), said in an interview on the 27th, "Our unique sensibility and tone and manner perfectly match the tastes of the MZ generation (Millennials + Generation Z)," adding, "Word of mouth among consumers has turned us into a company generating hundreds of billions of won in online sales." Founded in 2014, Saenghwal Gongjakso produces and sells over 80 types of consumer goods necessary for daily life, including kitchen, cleaning, and hygiene products. Sales have doubled every year, reaching 7 billion won in 2018, 15 billion won in 2019, and 30 billion won last year.

◆ "Creating a ‘fun company’ where employees enjoy working" = The witty copy phrases are decided through free discussions among employees. CEO Kim said, "Employees seem to enjoy working the most when embedding the brand philosophy into products," adding, "We minimize the CEO’s authority and involvement to allow joyful work in a horizontal structure." ESG (Environmental, Social, and Governance) management activities are also approached with a ‘fun’ attitude. Recently, they signed a social contribution agreement with the professional soccer team Seongnam FC and held an event where 200,000 won is saved per goal scored to be donated to underprivileged groups in the Seongnam area.

Saenghwal Gongjakso products stocked at Mongolian E-Mart
[Photo by Saenghwal Gongjakso]

CEO Kim emphasized, "Consumers’ awareness and preference for eco-friendly and safe products are gradually increasing," adding, "Although it may be difficult now due to cost burdens, ESG management in the daily necessities industry is a path that must be taken." In 2019, they introduced eco-friendly paper packaging instead of air caps and are currently preparing to replace plastic tape with paper tape. Products are domestically produced through OEM (Original Equipment Manufacturing) and ODM (Original Design Manufacturing) methods. CEO Kim stated, "Even when using chemical products, we strive to remove harmful ingredients as much as possible and create products close to natural."

◆ Expanding touchpoints through department store entry and collaborations... Targeting overseas markets = Last December, Saenghwal Gongjakso opened its first offline store on the first floor of Lotte Department Store Yeongdeungpo branch. Breaking the formula that luxury or cosmetics stores occupy the first floor of department stores, it is rare for a daily necessities brand to open a store on the first floor. Recently, as a green small and medium enterprise, they participated in the ‘Green Products Online Planning Exhibition’ hosted by Seoul City and TMON. They have been long-term partners with TMON since 2015. To increase consumer touchpoints in various ways, they also collaborated with the movie Sing-Hole.

They are also actively entering overseas markets. This month, they entered three E-Mart stores located in Ulaanbaatar, the capital of Mongolia, and in November, they will participate in the China International Import Expo held in Shanghai to introduce their products to buyers worldwide. CEO Kim said, "We have proven our competitiveness by receiving good responses from overseas consumers in the U.S., Japan, and Southeast Asia," adding, "We will accelerate our efforts to target overseas export markets, which had slowed due to COVID-19."

Going forward, they plan to continue supplying cost-effective and practical products while striving to enhance brand value. CEO Kim expressed her ambition, saying, "My dream is to make all the daily necessities that consumers use from the moment they wake up in the morning until they go to sleep at night." Finally, when asked for advice to startup juniors, she said, "If you have your own beliefs and philosophy and make good products, you will be recognized someday," adding, "It may take some time, but the day will surely come when others recognize your true value, so I hope you don’t give up."

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