e-commerce
case study
IN JUNGHOON 20061117
LEE SOHEE 20100344
ESTER BAUNGRATZ 49001624
Date: 2012.06.20
_group 13
contents
1 Company and environment overview
2 Problems HANSSEM faced::SWOT
3 e-commerce
4 Trouble shooting procedure
5 Result of HANSSEM
6 Further Improvement
7 Reference
1
1 Company and environment overview
- 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
2
1 Company and environment overview
- 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
3
2 Problems HASSEM faced :: SWOT
STRENGTH
WEAKNESS
- HISTORY
- LIMITED DISTRIBUTOR
- GOOD BRAND IMANGE
- FOCUS ON KITCHEN INTERIOR
- DEVELOPED DESIGN AND
MANUFACTRE PART
HANSSEM
OPPORTUNITY
THREATEN
- DEVELOPMENT OF VARIOUS TRANSACTION TYPE THROUGH
TECHNOLOGY
- NEW COMPETITORS FROM
OTHER COUNTRIES
- NEEDS OF CUSTOMIZED
PRODUCTS
- DEPRESSION OF WHOLE
ECONOMY
4
3
e-commerce
Before
B2B
Later
~90s
Ability to obtain products or services through
Internet using electronic payment services
B2C / C2C
Process
Institution
EC
e-commerce
Network
elements
5
3
e-commerce
there are 9
types.:
B
B
C
C
G
G
TWO different approaches
B
C
B
.: B2C
C
:: e-commerce website as just a
e-commerce website as just a
BRIDGE between the
DIRECT network between the
company and the consumer
company and the consumer
:: HANSSEM’s choice
6
3
e-commerce
.:Special point of HASSEM
Clicks and Bricks strategy
>>BRICKS STRATEGY separate on-line business and
off-line business
WHY :: Different supply chain, Different target customer
OFFLINE
ONLINE
HANSSEM
CUTOMERS
INTERIOR
PARTENERSHIP
furniture
KITCHEN INTERIOR
HANSSEM
finished goods
CUSTOMERS
finished goods
DISTRIBUTOR
7
3
e-commerce
.:Special point of HASSEM
Running their own e-commerce site
- Not using mediate company
- HANSSEM mall: renewal for easy use of customers
8
3
e-commerce
.:Special point of HASSEM
Selling on-line only product, SAM
- HANSSEM show room: off-line shop for only display
9
3
e-commerce
.:Special point of HASSEM
Expand 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
10
4 Trouble shooting Procedure
Need Innovation
The key to solve problems : INNOVATION !
Develop &
Change the
Retail System
INNOVATION
The
Reinforcement of
the Financial
Structure
The Aggressive
Investment to
the Core
Businesses
11
4 Trouble shooting Procedure
Need Innovation
The key to solve problems : INNOVATION !
DEVELOP &
CHANGE THE
RETAIL SYSTEM
by using
e-commerce
INNOVATION
The
Reinforcement of
the Financial
Structure
THE AGGRESSIVE
INVESTMENT TO
THE CORE
BUSINESSES
12
4 Trouble shooting Procedure
#OF TRADITIONAL
CONSUMER
DECREASE
DEPRESSION OF
CONSTRUCTION
INDUSTRY
B2B SALE
DECREASING
NEW CONSUMER OR
NEW BUSINESS MODEL
IS NEEDED: B2C
INTRODUCTION
OF
E-COMMERCE
LAUNCH
HANSSEM
MALL
SUCCEED
LAUNCH
THE PRODUCT
SSAM
13
5
Results of HANSSEM
1. Effects of e-commerce
The Graph of the Number of visitors of HANSSEM mall & Revenue through on-line
The number of visitors and revenue through e-commerce have been
dramatically growing
>> on-line market become a new retailer due to aggressive investment
14
5
Results of HANSSEM
1. Effects of e-commerce
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
15
5
Results of HANSSEM
2. Growth of company
- 1st company in their business market
- It is growing both outside and inside although competitors are in difficulties
(unit: 0.1billion won)
HANSSEM
LIVART
FURSYS
BORNEO
2010
2011
Fluctuation
Revenue
6,329
7,093
13.7%
Operating Profit
373
516
38.3%
Net income
293
393
34.1%
Revenue
3,954
5,212
31.8%
Operating Profit
195
92
-52.8%
Net income
144
70
-51.4%
Revenue
2,656
2,776
4.5%
Operating Profit
357
341
-4.5%
Net income
341
341
0.0%
Revenue
1,528
1,530
0.1%
Operating Profit
11
13
18.2%
Net income
16
-6
-137.5%
16
5
Results of HANSSEM
2. 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
17
5
Results of e-commerce
2. Growth of company
The Graph of the percentage of B2C
HANSSEM
LIVART
The Graph of the operating profit to sales ratio
ENEX
HANSSEM
LIVART
ENEX
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
18
6 Further Improvement
1 :: 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
19
7
References
− 한화증권 리서치 센터 한샘 보고서
− http://sports.chosun.com/news/ntype.htm?id=201204180100132850011
660&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
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