Korean furniture makers raise prices again ahead of peak season
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According to sources on Monday, Hanssem Co., the largest furniture maker in Korea, raised the price of some products it sells online by an average of 3 percent on Feb. 1. The company also plans to raise prices of beds, sofas and dining tables sold at brick-and-mortar stores by an average 5 percent this month. Earlier in January, the company raised prices of some kitchen and storage products by an average of 2.7 percent.
Hyundai Livart Co. decided to raise the prices of kitchen and bath products sold online by up to 5 percent from the end of this month. As soon as the new year began, the company raised home furnishing items such as beds, sofas and chairs by around 5 percent on average. Hanssem and Hyundai Livart raised their prices five and three times, respectively, by product category last year.
Sealy Korea raised the selling price of about 30 mattress products by an average of 7 percent last month. Coway Co. also raised the rental price of mattresses by an average of 4 percent for new customers from Jan. 2.
Ace Bed Corp., which has been conservative with price increases, raised the price of 13 mattresses and 40 frames by up to 20 percent at the end of last year. It is the first time in 5 years since 2017 that Ace Bed has raised its prices. In contrast, Simmons-K announced its policy to freeze prices again this year following last year’s move.
Fursys Inc. raised the retail price of office furniture, including desks and chairs, by an average of 4.45 percent on Monday.
Raising selling prices is a way of survival for Korean furniture makers as they suffer from deteriorating profitability. Due to cost hikes, Hanssem recorded an operating loss of 13.6 billion won in the third quarter of last year. Hyundai Livart’s operating profit in the third quarter of last year was only 500 million won, down 87 percent from the same period a year ago.
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