Hanssem Overcomes Construction Market Slump with Strategic B2C Investments

Third Quarter Sales Surpass Expectations at 441.4 Billion Won
Premium Lines "Kitchen Bach" and "Euro Kitchen" Drive Revenue Growth
Comprehensive Performance from "Sam Festa" Spurs Structural Improvement

As the prolonged slump in the construction industry continues to impact the entire interior design sector, Hanssem is overcoming the downturn by seeing tangible results from its B2C (business-to-consumer) investment strategy.

Since the second quarter of 2023, Hanssem has recorded ten consecutive quarters of profitability, maintaining a stable revenue structure. In the third quarter of this year, the company posted sales of 441.4 billion won and an operating profit of 6.8 billion won, surpassing market expectations. The combined effects of strengthening product competitiveness across premium and mid-to-high-end markets, revamping distribution channels to focus on customer experience, and advancing marketing strategies have not only defended performance but also driven fundamental structural improvements, according to industry evaluations.

Hanssem Flagship Nonhyeon. Hanssem

In recent years, Hanssem has undertaken structural reforms across products, distribution, and marketing to enhance its B2C competitiveness. The core pillars of this transformation include portfolio adjustments centered on key product lines, the establishment of offline flagship stores to improve customer experience, and the advancement of marketing activities.

The kitchen segment, in particular, exemplifies these changes. Hanssem's flagship lineup, "Euro Kitchen," recorded a 13% year-on-year sales growth in the mid-to-high-end market after launching new products with improved design and storage efficiency. The premium line "Kitchen Bach," which underwent a brand renewal, also grew by 44% compared to the previous year. A communication strategy emphasizing sophisticated design, premium materials, and construction reliability has led to a recovery in demand among premium consumers.

The overhaul of distribution channels has also been effective. In June, Hanssem redefined its offline distribution strategy by reopening the "Flagship Nonhyeon" store in the furniture district of Nonhyeon-dong, Gangnam-gu, Seoul. By transforming the store into a premium space that combines experience, consultation, and design-not just display-sales at Flagship Nonhyeon increased by 77% and the number of consultations by 50% year-on-year. During the same period, sales of "Domus," Hanssem's imported furniture distribution brand, rose by over 80%, further solidifying its presence in the high-end living market.

Hanssem Euro 700 Grace. Hanssem

Recently, Hanssem expanded its flagship stores to the Yeongnam region as well. The newly renovated "Flagship Busan Centum," which reopened last month, saw both sales and visitor numbers nearly double immediately after opening, establishing itself as a leading space in the region's premium market.

Through advanced marketing activities, Hanssem has achieved both sales growth and improved profitability. At the "Sam Festa" held in September, the company strategically exposed core products in the interior, home furnishing, and living sectors to segmented targets based on analysis of customer purchasing tendencies, interests, and seasonal characteristics. This resulted in record-high daily order and contract amounts, with online home furnishing (furniture) sales up 27% compared to the first half of the year. Notably, the "Sam Kids Storage Cabinet" saw explosive demand among family consumers, with sales up 97% from the previous event.

Industry experts interpret Hanssem's third-quarter results not merely as the maintenance of profitability but as evidence of a fundamental business structure transformation. Even during an economic downturn, the company has simultaneously improved product competitiveness, distribution efficiency, and brand perception. Going forward, Hanssem plans to further strengthen its core categories such as student rooms, bathrooms, and kids' furniture, expand distribution competitiveness across both online and offline channels, and broaden its mid-to-long-term revenue base through B2B structural reforms, thereby enhancing its fundamental competitiveness.

An industry official commented, "Hanssem's B2C-focused strategy, which has been in preparation for several years, is now becoming visible. As the construction market slowdown persists, only companies that have shifted to a consumer-centric structure will be able to rebound quickly when the market recovers."

A Hanssem representative also stated, "Strengthening B2C was a strategic choice to enhance the brand's long-term competitiveness rather than short-term results," adding, "We will continue to drive innovation centered on customer experience across products, stores, and services."

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