Hanssem cuts costs with social media marketing

[Photo by Lee Chung-woo]

Hanssem Co., a leading furniture and interior company in the Korean market, is actively adopting social media marketing strategies to reduce marketing costs amidst industry challenges stemming from a sluggish real estate market and economic downturn.

According to industry sources on Wednesday, Hanssem reduced its expenses for traditional “above-the-line” (ATL) marketing, which includes TV, radio, and newspaper advertisements, by 40 percent compared to 2023. The company reportedly incurred no expenses for ATL marketing in the latter half of 2023.

On the other hand, the company’s costs for “below-the-line” (BTL) marketing, centered around social media platforms, increased by about 80 percent compared to the previous year. The ratio of ATL to BTL marketing expenses changed to 1:9 in 2023, from the previous year’s 3:7. With this strategic move, Hanssem is said to have saved about 2.5 billion won ($190 million) in cumulative marketing expenses by the third quarter of 2023.

“Due to the uncertainty regarding the timing of real estate market recovery, it appears that many furniture companies will focus on cost efficiency rather than expanding sales in 2024,” an industry insider said. Industry insiders view Hanssem’s latest marketing strategies as part of its comprehensive cost-cutting efforts following the company’s net loss of 71.3 billion won in 2022.

Hanssem has been promoting children’s room-related products via platforms such as YouTube since the end of 2023. By hiring TV personality Kim Na-young and her child, the company posts advertisement videos on YouTube and actively engages in viral marketing on other social media platforms by sharing advertisement photos.

By Park Joon-hyung and Chang Iou-chung

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]