Hyundai Department Store Group, Marking Its 50th Anniversary, Announces ‘Vision 2030’
Living & Interior Division Targets the KRW 5.1 Trillion Range a Decade From Now
Hyundai Department Store Group has announced ‘Vision 2030,’ a blueprint for its future, to mark the new year of 2021—its 50th anniversary. Building on its group vision of becoming ‘the company most trusted by customers,’ the group aims to usher in a KRW 40 trillion revenue era by 2030 by creating shared profit and value in a virtuous cycle with society.
To this end, Hyundai Department Store Group plans to establish and pursue tailored growth strategies for its three core business portfolios—retail, fashion, and living & interior—while also actively entering promising new future ‘seed’ businesses that offer high growth potential and can generate synergy with its existing operations.
The group also unveiled its aspiration to become ‘a company that offers trust and hope to future generations’ by strengthening its Environmental, Social, and Governance (ESG) capabilities that contribute to creating social value, not just quantitative growth.
Hyundai Department Store Group announced that on the 4th, the first business day of the new year, it held a ‘Digital Vision Proclamation Ceremony’ for all group executives and employees and unveiled ‘Vision 2030,’ which contains these plans.
‘Vision 2030’ inherits the management philosophy of ‘Vision 2020,’ announced in 2010—its mission (to make customers happy and the world abundant) and its vision (to be the company most trusted by customers)—while giving concrete form to a business strategy for the group’s sustained growth over the next decade, in consideration of an environment in which uncertainty has become the norm.
Since announcing ‘Vision 2020,’ Hyundai Department Store Group has carried out large-scale investments such as new store openings, along with more than ten mergers and acquisitions (M&A), completing a business portfolio built on three pillars: ‘retail, fashion, and living & interior.’ As a result, the group’s revenue, which stood at KRW 7.8 trillion in 2010, grew to KRW 20 trillion in 2020, a decade later, and its ranking among the nation’s conglomerates (based on 2019 assets) rose eight places to 22nd, up from 30th in 2010. In addition, the group’s overall debt-to-equity ratio (as of 2019) stood at 38.4%, maintaining a stable financial structure over the ten-year period.
Chung Ji-sun, Chairman of Hyundai Department Store Group, said, “We established ‘Vision 2030’ in order to respond nimbly to an environment in which the industrial paradigm is changing rapidly amid constant uncertainty, and to create new growth opportunities,” adding, “‘Vision 2030’ will serve as a compass that points to the core values and business directions the group should pursue over the next ten years.”
Chairman Chung went on to emphasize, “Building on the strength that has allowed us to keep growing despite countless hardships over the past half-century, let us use ‘Vision 2030’ as a lever to together write a new chapter in the history of Hyundai Department Store Group—one that will endure for more than 100 years.”
In this regard, an official from Hyundai Department Store Group explained, “If, following the announcement of ‘Vision 2020,’ the group laid the foundation for growth across its operations—expanding from a retail- and food-centered business into fashion, living, and building materials—then ‘Vision 2030’ embodies the determination to build a company that grows together with society in a virtuous cycle, including by contributing social value, based on the group’s concrete business strategies.”
The Living & Interior Division aims to double its revenue over the next ten years to the KRW 5.1 trillion range, up from the current KRW 2.6 trillion, by enhancing the competitiveness of its existing businesses and entering related businesses in anticipation of future changes in the environment.
First, Hyundai Livart, positioning itself as ‘a company that creates the value of space,’ will expand its furniture (home furnishing) and total interior lineup and diversify its distribution channels. It also plans to differentiate itself in quality and design and to realize a ‘smart home’ that incorporates IT technologies such as IoT (Internet of Things), AI (artificial intelligence), and big data into customers’ lifestyles.
Hyundai L&C aspires to reinvent itself as a ‘customer-tailored total living & interior company’ through an expanded product lineup, broader online and offline sales channels, and differentiated services. In particular, anticipating that demand for eco-friendly and premium materials will grow going forward, it plans to enter related markets such as eco-friendly packaging materials.