e-commercecase study

IN JUNGHOON 20061117LEE SOHEE 20100344

ESTER BAUNGRATZ 49001624

_group 13Date: 2012.06.20

contents

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Company and environment overview

Problems HANSSEM faced::SWOT

e-commerce

Trouble shooting procedure

Result of HANSSEM

Further Improvement

Reference

Company and environment overview

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- HANSSEM Co.,Ltd. is a

total home interior manufacturer since 1970

- Introduced modern kitchen design to Korea

- Invented terms like System Kitchen and Intelligent Kitchen - Introduced the whole new concepts of the Kitchen

culture to Korea

3 large branches: HANSSEM MALL HANSSEM INTERIOR HANSSEM KITCHEN

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- economic depression in Korea

- construction industry with problems

- appearance of new multinational competitors such as IKEA

- Decrease of the number of marriages that could be potential customers

- Low price competition through homeshopping

Company and environment overview

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Problems HASSEM faced :: SWOT2

STRENGTH- HISTORY

- GOOD BRAND IMANGE- DEVELOPED DESIGN AND MANU-

FACTRE PART

WEAKNESS- LIMITED DISTRIBUTOR

- FOCUS ON KITCHEN INTERIOR

OPPORTUNITY- DEVELOPMENT OF VARIOUS - TRANSACTION TYPE THROUGH

TECHNOLOGY- NEEDS OF CUSTOMIZED PROD-

UCTS

THREATEN- NEW COMPETITORS FROM

OTHER COUNTRIES- DEPRESSION OF WHOLE ECON-

OMY

HANSSEM

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e-commerce3

Before B2B Later ~90s

Ability to obtain products or services through Internet using electronic payment services

B2C / C2C

ECInstitution

Network

Process

e-commerce

elements

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e-commerce3

there are 9 types.: B B

CC

G G

TWO different approaches .: B2C

:: e-commerce website as just a

BRIDGE between the company and the consumer

e-commerce website as just a

DIRECT network between the company and the consumer

:: HANSSEM’s choice

B C B C

e-commerce .:Special point of HASSEM3Clicks and Bricks strategy>>BRICKS STRATEGY separate on-line business and

off-line businessWHY :: Different supply chain, Different target customer

furniture

ONLINE

HANSSEM CUTOMERS

OFFLINE

HANSSEM

DISTRIBUTOR

INTERIOR PARTENERSHIP

CUSTOMERS

finished goods finished goods

KITCHEN INTERIOR

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Running their own e-commerce site- Not using mediate company- HANSSEM mall: renewal for easy use of customers

e-commerce .:Special point of HASSEM

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3Selling on-line only product, SAM- HANSSEM show room: off-line shop for only display

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e-commerce .:Special point of HASSEM

3Expand types of channels to meet customers- Smart guide:: Kitchen interior estimation consultant service through Tablet PC customers can use off-line or on-line homepage for this service

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e-commerce .:Special point of HASSEM

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4Need Innovation

The key to solve problems : INNOVATION !

INNOVATION

Develop & Change the Re-

tail System

The Aggressive Investment to the Core Busi-

nesses

The Reinforce-ment of the Fi-

nancial Structure

Trouble shooting Procedure

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4Need Innovation

The key to solve problems : INNOVATION !

INNOVATION

DEVELOP & CHANGE THE RE-

TAIL SYSTEM

THE AGGRESSIVE INVESTMENT TO THE CORE BUSI-

NESSES

The Reinforce-ment of the Fi-

nancial Structure

by using

e-commerce

Trouble shooting Procedure

Trouble shooting Procedure

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SUCCEED

DEPRESSION OFCONSTRUCTION

INDUSTRY

#OF TRADITIONAL CONSUMER DECREASE

B2B SALE DECREASING

NEW CONSUMER OR NEW BUSINESS MODEL

IS NEEDED: B2C

INTRODUCTION OF

E-COMMERCE

LAUNCH HANSSEM

MALL

LAUNCH THE PRODUCT

SSAM

The number of visitors and revenue through e-commerce have been dramatically growing

>> on-line market become a new retailer due to aggressive investment

51. Effects of e-commerce

The Graph of the Number of visitors of HANSSEM mall & Revenue through on-line

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Results of HANSSEM

51. Effects of e-commerce

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Detail indices about HANSSEM’s e-commerce

1 :: On-line only product “SAM”, the HIT product selling roughly 30,000 sets in a month

2 :: HASSEM’s own on-line shopping mall, “HANSSEM mall” reform for customers‘ easy use

3 :: 22.5 billions of revenue through on-line in 1Q of 2012 the amazing growth by 27% comparing with 1Q in 2011

Results of HANSSEM

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52. Growth of company

(unit: 0.1billion won) 2010 2011 Fluctuation

HANSSEMRevenue 6,329 7,093 13.7%Operating Profit 373 516 38.3%Net income 293 393 34.1%

LIVART

Revenue 3,954 5,212 31.8%

Operating Profit 195 92 -52.8%

Net income 144 70 -51.4%

FURSYS

Revenue 2,656 2,776 4.5%

Operating Profit 357 341 -4.5%

Net income 341 341 0.0%

BORNEO

Revenue 1,528 1,530 0.1%

Operating Profit 11 13 18.2%

Net income 16 -6 -137.5%

- 1st company in their business market- It is growing both outside and inside although competitors are in difficulties

Results of HANSSEM

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52. Growth of company

The Graph of HANSSEM Operating Revenue and its Rate

Operating revenue and the percentage of it are increasing >>Development of profit structure

Results of HANSSEM

52. Growth of companyResults of e-commerce

The Graph of the percentage of B2C

HANSSEM LIVART ENEX

The Graph of the operating profit to sales ratio

Better return structure comparing with competitors:: percentage of B2C (B2B is affected much by external factor and B2C leads new types of customers):: high operating profit to sales ratio

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HANSSEM LIVART ENEX

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Further Improvement1 :: Competitors copy HASSEM’s strategy maintaining good brand image and loyal customers

2 :: New trend of life style come out DIY, customized furniture, or furniture for single person

3 :: Become a Global company & Global companies come to Korea Localized strategy, effective management method for different countries are needed

AND ::: these further improvements are solved through the concept of e-business especially e-commerce

References7

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− 한화증권 리서치 센터 한샘 보고서− http://sports.chosun.com/news/ntype.htm?

id=201204180100132850011660&servicedate=20120418

− http://myecobo.consumernews.co.kr/news/article.html?no=10620

− http://www.newspim.com/view.jps?newsld=20120417000282

− http://www.hanssem.com/commain.html