SEOUL, KOREA- When HNS Mall, a home shopping mall for small- and medium-sized companies, opened in January 2012, many voiced worries about its future, saying that it would be tough for HNS Mall to compete against other home shopping companies which are affiliates of large business groups.
For its first year, HNS Mall set its target handling amount at 500 billion won (sales excluding those refunded or exchanged). The situation reversed at the end of the year. The company achieved sales of 706.8 billion won, exceeding its target by 40 percent. Above all, it posted an operating profit of 21 billion won in the first year, defying forecasts that it may take at least three years for the company to make a positive operating profit.
HNS Mall is still growing at a robust pace. Its first-half handling amount stood at 513.5 billion won, up 86 percent from 215 billion won a year ago. It is expected to be able to pass the 1-trillion-won mark within this year, much faster than others which spent, in general, 6-9 years to reach the 1 trillion-won-milestone.
Key factors behind its robust growth include cheap sales commissions, the acquisition of top-quality channels, an ideal division of management role and a slim structure.
