Hanssem's B2C Reinforcement Focuses on Boosting Performance for 2nd consecutive Year, Driving the Growth of Teacher Festa
Apr 14, 2025
While B2B (business-to-consumer) sales are slowing down due to the sluggish construction economy, the expansion of B2C (business-to-consumer) sales for general consumers is emerging as a new path for the industry as a whole. Hanssem is continuing a stable performance recovery by focusing on strengthening its B2C division.
After posting a deficit in the third quarter of 2022, Hanssem, which overcame the crisis and succeeded in turning into a surplus in the second quarter of 2023, has continued its earnings growth for the second consecutive year since then. In particular, it succeeded in rebounding in 2024, recording a 16-fold increase in operating profit compared to the previous year.
At the center of this achievement is Hanssem's B2C strategy. Industry sources say Hanssem has preemptively responded to market changes, away from the B2B-centered sales structure, which is largely affected by the sluggish construction economy. In a recent report, the Korea Investment & Securities predicted that Hanssem's B2C division sales are expected to rise 7.3 percent year-on-year in the first quarter on the back of a recovery in household sales and an increase in housing transactions.
Hanssem's B2C growth has a teacher pesta. Hanssem Teacher Festa is Hanssem's representative shopping event that is held simultaneously online and offline, covering furniture, interior, and living goods. It can be said to be a strategic event aimed at both customer inflow and real sales increase.
Teacher Festa in the first half of the year, which lasted for about a month from March 4 to 31, recorded the highest performance ever, with orders increasing 22% compared to Teacher Festa in the second half of the previous year. In particular, on the 31st, the last day of the event, it attracted attention by achieving the highest daily order of 2.66 billion won. The average daily number of visitors increased by 20% compared to the previous event, and offline orders rose by a whopping 56%, demonstrating the effectiveness of the complex channel strategy.
Beyond the short-term increase in sales, SamFesta has important implications for Hanssem's mid- to long-term B2C growth strategy. By increasing brand loyalty and providing opportunities for integrated experiences of various product lines, it has strengthened the brand experience that encompasses the entire lifestyle of customers.
In addition, the success model of TeacherFesta created by Hanssem is affecting the industry as a whole. Recently, home interior Festa-type events tailored to the season of marriage and moving are spreading in the same industry, and some say Hanssem is leading the market trend.
Another factor that allowed Hanssem to succeed in rebounding in its performance despite the crisis is its supply chain efficiency and cost-cutting strategy. Since the fourth quarter of 2022, we have been striving to improve cost ratio by continuously promoting strategic purchase and price optimization for each distribution channel. As of the second quarter of 2024, the cost ratio improved by 2.0%p year-on-year.
In addition, it met consumer needs and minimized sales declines by strengthening its high-yield product line and focusing marketing capabilities. As a result, in the fourth quarter of last year, the B2C sector showed strong growth, and sales turned to a 4.2% year-on-year increase. The home furnishings sector also grew 9.6% year-on-year in the fourth quarter, supporting B2C performance.
After posting a deficit in the third quarter of 2022, Hanssem, which overcame the crisis and succeeded in turning into a surplus in the second quarter of 2023, has continued its earnings growth for the second consecutive year since then. In particular, it succeeded in rebounding in 2024, recording a 16-fold increase in operating profit compared to the previous year.
At the center of this achievement is Hanssem's B2C strategy. Industry sources say Hanssem has preemptively responded to market changes, away from the B2B-centered sales structure, which is largely affected by the sluggish construction economy. In a recent report, the Korea Investment & Securities predicted that Hanssem's B2C division sales are expected to rise 7.3 percent year-on-year in the first quarter on the back of a recovery in household sales and an increase in housing transactions.
Hanssem's B2C growth has a teacher pesta. Hanssem Teacher Festa is Hanssem's representative shopping event that is held simultaneously online and offline, covering furniture, interior, and living goods. It can be said to be a strategic event aimed at both customer inflow and real sales increase.
Teacher Festa in the first half of the year, which lasted for about a month from March 4 to 31, recorded the highest performance ever, with orders increasing 22% compared to Teacher Festa in the second half of the previous year. In particular, on the 31st, the last day of the event, it attracted attention by achieving the highest daily order of 2.66 billion won. The average daily number of visitors increased by 20% compared to the previous event, and offline orders rose by a whopping 56%, demonstrating the effectiveness of the complex channel strategy.
Beyond the short-term increase in sales, SamFesta has important implications for Hanssem's mid- to long-term B2C growth strategy. By increasing brand loyalty and providing opportunities for integrated experiences of various product lines, it has strengthened the brand experience that encompasses the entire lifestyle of customers.
In addition, the success model of TeacherFesta created by Hanssem is affecting the industry as a whole. Recently, home interior Festa-type events tailored to the season of marriage and moving are spreading in the same industry, and some say Hanssem is leading the market trend.
Another factor that allowed Hanssem to succeed in rebounding in its performance despite the crisis is its supply chain efficiency and cost-cutting strategy. Since the fourth quarter of 2022, we have been striving to improve cost ratio by continuously promoting strategic purchase and price optimization for each distribution channel. As of the second quarter of 2024, the cost ratio improved by 2.0%p year-on-year.
In addition, it met consumer needs and minimized sales declines by strengthening its high-yield product line and focusing marketing capabilities. As a result, in the fourth quarter of last year, the B2C sector showed strong growth, and sales turned to a 4.2% year-on-year increase. The home furnishings sector also grew 9.6% year-on-year in the fourth quarter, supporting B2C performance.
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This article was translated by Naver AI translator.
