Kim Yujin's Management Efficiency Worked... Hanssem Achieves Profit Turnaround

Sales of 1.967 trillion KRW, Operating Profit of 1.9 billion KRW Recorded
Profitability Improvement Through Management Efficiency

Hanssem, which recorded a deficit in 2022, successfully turned a profit last year by tightening its belt. Hanssem plans to focus on improving profitability this year through digital transformation (DT) and other initiatives.

Hanssem announced on the 5th that it recorded sales of 1.967 trillion KRW and an operating profit of 1.9 billion KRW last year. Although sales decreased by 1.7% compared to the previous year, operating profit turned positive. As the number one company in the furniture industry, Hanssem recorded losses for three consecutive quarters from the third quarter of 2022 to the first quarter of last year. The cumulative deficit for 2022 reached 21.6 billion KRW. As the slump continued, Hanssem brought in CEO Kim Yujin in July last year to change the atmosphere.

Yujin Kim, CEO of Hanssem

CEO Kim, who was formerly the head of IMM Private Equity, the largest shareholder of Hanssem, previously served as CEO of the cosmetics company Able C&C, where she achieved a turnaround from deficit to profit within one year through business restructuring. After taking office, CEO Kim emphasized management efficiency as a core strategy. While excluding artificial restructuring, she focused on improving cost ratios and concentrating on core businesses to secure profitability. Representative measures included store restructuring in overlapping commercial areas, cost improvements through supply chain efficiency such as logistics and raw material management, and marketing efficiency centered on digital communication.

Additionally, CEO Kim carried out a major organizational restructuring by placing the Management Support Headquarters, which oversees HR, general affairs, and public relations, directly under the CEO. The core business division, the DT division, retained only the IT headquarters, transferring most personnel to the Rehouse, Home Furnishing, and Special Sales Business Headquarters, focusing on selection and concentration. A Hanssem official explained, “We were able to turn operating profit positive through profitability improvements driven by key product cost improvements and cost efficiency.”

Hanssem launched 'Hanssem Mall' last October, allowing consumers to purchase products both online and offline. (Photo by Hanssem)

This year, Hanssem will continue to focus on building a business structure that can improve profitability. Considering that offline stores are essential due to the nature of furniture products, the company plans to increase the number of stores while strengthening online services to allow customers to conveniently purchase necessary products via the internet and mobile devices.

In October last year, Hanssem launched Hanssem Mall, linking online and offline channels to increase customer touchpoints. Based on this, the strategy is to enhance the connectivity between online and offline channels and expand customer touchpoints in each channel. CEO Kim said, "In 2024, we will secure growth momentum by strengthening the fundamental competitiveness of our core businesses."

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