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Saengong CEO Kim Ji-seon holds a hand soap product at his office in Seoul, on Aug. 8. Courtesy of Saengong |
By Kim Jae-heun
Saengong is a local household specialty firm that started in 2014. The company only sells 60 items, these include: kitchen utensils, cleaning supplies and hygiene products and yet, it is already one of the most flourishing young brands in the market. Its sales have been rising every year from 7 billion won ($5.3 million) in 2018 to 15 billion won in 2019 and 30 billion won in 2021. This year, the company aims to achieve 50 billion in revenue.
Saengong CEO Kim Ji-seon said his early career at an online marketing firm helped him learn about the price structure of the household item market and observed that many existing products were too pricey.
"The local household goods market was already saturated at the time. But I knew if I can make products focusing on basic purpose, there is a good chance of making the business successful," Kim said during an interview with The Korea Times on Aug. 8. "Price, design and raw materials used to make the products were the three key elements that I focused on the most and was, therefore, able to establish the brand identity well."
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Saengong's popular latex rubber gloves / Courtesy of Saengong |
Kim adopted minimalistic designs for Saengong with the thought that household items nowadays should match people's home interiors.
"Before, most of the household item firms here used primary colors like red or blue for their products. I thought that they should also pursue modern designs and use black or white colors because they are easy to match," Kim said.
The CEO's strategy dovetailed with consumers' needs and Saengong successfully settled down in the market. But many competitors started to copy Saengong's brand strategy and Kim had to renew his brand designs again in April.
"We wanted to give a more premium and clean image with our products now. The company unveiled a new brand image using stencil graphic motifs and renewed all the designs of all visual products sold online and offline," Kim said.
The content was another marketing strategy Kim paid attention to. He decided to use social media and share tips on how to use Saengong items better at home. This grabbed the attention of young consumers in their 20s and 30s. Soon after, Saengong signed partnership deals with online shopping malls like Musinsa and Bucket Place to sell its products.
Saengong is now turning its attention to the overseas market. The company is introducing different items in accordance with local consumers' needs, tastes and consumption habits.
"In Southeast Asian countries, humid weather is the problem. Here, we mainly focus on products like dehumidifying agents and toxic mold cleaners. Another popular item abroad is latex rubber gloves. Our product comes in grey and beige, which is quite unique," Kim added.
Saengong currently operates business in 11 countries including the United States, Canada, Mongolia and Singapore. In February, the household specialty firm began transacting via Amazon to sell its product in the North American online market.