Casamia Targets Second Half with 'Premium·Millennial' Two-Track Strategy

A more evolved premium complex store combining home appliances, furniture exhibition halls, and cafes, 'Casamia Living Power Center Branch'.
[Photo by Casamia]

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[Asia Economy Reporter Kim Jong-hwa] Shinsegae's living & lifestyle brand 'Casamia' has begun full-scale market penetration through aggressive investment.

Although Casamia has been part of the Shinsegae Group for two years, it self-assesses that it has not properly imprinted a distinct brand image unique to Casamia on customers. Therefore, this year, it plans to accelerate market share expansion by investing a record-high 44.5 billion KRW to strengthen its premium product lineup and operate differentiated stores.

This year, despite the COVID-19 pandemic, overall demand in the home furnishing market has increased, and sales of premium products have also shown strong growth, with first-quarter sales rising about 24% compared to the same period last year. The second-quarter performance, which includes demand from newlywed households, is also positive. Casamia plans to continue this trend with more aggressive marketing in the second half of the year.

Casamia's strategy is two-pronged: differentiated store operations targeting the premium market and online marketing aimed at millennials, a rising key consumer group in the living industry.

Casamia's main target is the premium home furnishing market. At the end of last year, it launched the high-end French modern style furniture collection 'LA MAISON,' and in March, it launched a new designers collection in collaboration with world-renowned designer Patricia Urquiola.

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Casamia's premium line furniture, including LA MAISON and the designers collection, has seen continuous growth in demand and sales share, with average monthly sales from January to May increasing by more than 40% compared to the average monthly sales for the entire previous year. High-priced premium products are driving overall performance.

Accordingly, on the 8th, Casamia expanded the sales stores for the Patricia Urquiola collaboration collection from the existing single store at Shinsegae Gangnam to a total of four stores nationwide, including Shinsegae Centum City Mall in Busan and Apgujeong, areas with high consumer spending levels. It plans to continue its premium strategy by increasing premium collection stores in other key commercial areas such as Yeongdeungpo.

Casamia is also focusing on differentiation through expanding specialized stores via collaborations with various industries. Last year, Casamia partnered with Samsung Electronics to open the industry's first combined electronics and furniture stores, Casamia Digital Plaza Changwon Main Store and Digital Plaza Busan Main Store. This initiative attracted significant attention for proposing premium living spaces and creating a new offline store model not seen before.

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This year, Casamia opened the first large-scale complex store in the metropolitan area, 'Casamia Living Power Center,' in Giheung, Yongin, in collaboration with Samsung Electronics and Starbucks. The Living Power Center is one of the top five largest Casamia stores nationwide, combining an electronics and furniture showroom with a caf?, representing an evolved premium complex store. The strategic collaboration with top brands in each field, Samsung Electronics and Starbucks, is also meaningful. In the second half of the year, Casamia plans to expand collaboration to the cultural and arts sectors to introduce new types of specialized stores.

Casamia also plans to focus marketing efforts on the 2030 millennial generation, which has grown into a core target group in the home furnishing market. It will further expand offline stores and increase consumer touchpoints through online platforms. Reflecting rapidly changing consumer trends, Casamia is accelerating the development and launch of new products and attempting to diversify its business areas.

In line with the 'untact consumption' and 'cost-effectiveness' trends spreading mainly among the 2030 generation, Casamia launched the functional roll mattress 'Lollipop,' entering the domestic roll-pack mattress market. Following this mattress launch, Casamia is also considering new businesses targeting the rapidly growing sleep market.

A Casamia official said, "We will establish ourselves as a market-leading brand through business expansion into various lifestyle fields," adding, "We will imprint a distinct brand image unique to Casamia on customers and accelerate market share expansion."

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