#SPECIAL INTERVIEW
2015.06.01
AP Counseling Sales Div., Lee Woo-dong
SPECIAL
INTERVIEW
INTERVIEW
Special interview with members of the board aims to share the leadership's vision and promote seamless global communication
The innovation of the Counseling Sales Division will go on in 2015!
AMOREPACIFIC Counseling Sales Div., Lee Woo-dong
The counseling sales system of AMOREPACIFIC, which first began in 1964, is a distribution channel that has led the company's growth and development for over 50 years. AMOREPACIFIC's leading distribution channel, counseling sales is preparing to take another leap forward this spring. News Square caught up with Lee Woo-dong, leader of the AMOREPACIFIC Counseling Sales Division, and asked him about his thoughts on ways to change and bring innovation to counseling sales, chiefly through sole representation stores. Let's hear from Mr. Lee about the goals and strategies of the Counseling Sales Division, as it seeks to achieve its stretch goals in 2015.
Q. We once again saw the tremendous power of counseling sales at the 2015 Amore Counselor Annual Convention last month. Please tell us a little about the Counseling Sales Division.
Counseling sales was an initiative first fostered by the founder Suh Sung-whan in 1964, literally at the risk of his own life. Of all AMOREPACIFIC's distribution channels, counseling sales has the longest history and greatest significance. Our Division consists of 2.5 million customers in Korea, 37,000 Amore Counselors, 1,600 employees working at sole representation stores, 550 owners of sole representation stores, and 500 sales representatives. We are trying to be more faithful to the essence of the business, which is to be a "relational business based on community culture," so that all members of this great counseling-sales ecosystem can take pride in being a part of it. We are seeking to create a new counseling sales culture based on empathy and communication so that members can bring innovation to their ideas and actions.
Counseling sales was an initiative first fostered by the founder Suh Sung-whan in 1964, literally at the risk of his own life. Of all AMOREPACIFIC's distribution channels, counseling sales has the longest history and greatest significance. Our Division consists of 2.5 million customers in Korea, 37,000 Amore Counselors, 1,600 employees working at sole representation stores, 550 owners of sole representation stores, and 500 sales representatives. We are trying to be more faithful to the essence of the business, which is to be a "relational business based on community culture," so that all members of this great counseling-sales ecosystem can take pride in being a part of it. We are seeking to create a new counseling sales culture based on empathy and communication so that members can bring innovation to their ideas and actions.
The innovation in counseling sales whose first seeds were planted in the latter half of 2013 are now coming into bloom, offering exciting opportunities and potential for sustainable growth. After reforming the sales organization to PRM last year, we have completely switched the sales index over to customer sales – something which had seemed impossible in the past – based on active communication and executive ability by employees. In addition, we were able to significantly reduce the failure rate of innovations tried out by our counselors, as well as inventories. This is consistent with the strategic direction of the company, which is seeking qualitative growth. We have seen counselors' sales and incomes increase considerably (4.26 million KRW in sales per counselor in March, an increase of +29.1% year on year / income per capita 1.84 million KRW, an increase of +17.3% year on year). Accordingly, I think the sense of belonging, as well as job pride, shown by Amore Counselors has no doubt increased significantly.
Q. We look forward to hearing about the future accomplishments of the Counseling Sales Division. Please share with us the strategies and vision behind the Counseling Sales Division.
Our utmost focus is on the 'income and presence' of counselors. We will strive for the dreams and successes of counselors who are already forging new multi-faceted identities for themselves as women, as members of society, as housewives and as sales representatives. The Counseling Sales Division is a specialized organization of beauty and health optimized for the era of well-being. Our vision is to secure our place at the top in counseling business by achieving 2 trillion KRW in customer sales by 2020.
To this end, we aim to provide greater satisfaction and reward for customers and counselors, and increase per capita income of the counselors to at least 2.5 million KRW by 2020. We will also reinforce our counseling competences and enhance our brand value by providing customers with experiences that are differentiated from offline stores. Finally, we will promote a counselor culture represented by relationship and jeong (affection), and carry out a variety of community services to secure our place as a desirable business for women and a respectable business for customers.
Our utmost focus is on the 'income and presence' of counselors. We will strive for the dreams and successes of counselors who are already forging new multi-faceted identities for themselves as women, as members of society, as housewives and as sales representatives. The Counseling Sales Division is a specialized organization of beauty and health optimized for the era of well-being. Our vision is to secure our place at the top in counseling business by achieving 2 trillion KRW in customer sales by 2020.
To this end, we aim to provide greater satisfaction and reward for customers and counselors, and increase per capita income of the counselors to at least 2.5 million KRW by 2020. We will also reinforce our counseling competences and enhance our brand value by providing customers with experiences that are differentiated from offline stores. Finally, we will promote a counselor culture represented by relationship and jeong (affection), and carry out a variety of community services to secure our place as a desirable business for women and a respectable business for customers.
Q. The consumption patterns are rapidly changing every day. How do you see the counseling sales market this year?
Counseling sales remains a growing market. The current economic recession and the ongoing demographic trend of an aging society represent two forces that are driving more women to find their own careers. A social culture that's relationship-centered will inevitably lead us to meet and interact with ever wider circles of people. The question is how we should cope with all these changes. What we must do, I think, is to actively improve our products and business models in response to the changing market.
We operate counselor-centered 'Beauty Square,' the exclusive counseling sales customer application 'Beauty Q,' and the video-centered 'Beauty Mento' through which customers can communicate with counselors. We are also striving to keep up with ongoing changes in the market and customer preferences by more actively adopting digital tools, most noticeably by reforming the payment system. Counseling sales will be able to position itself as a channel with sustainable growth so long as it continues to achieve small successes from the perspective of both customers and the wider market.
Counseling sales remains a growing market. The current economic recession and the ongoing demographic trend of an aging society represent two forces that are driving more women to find their own careers. A social culture that's relationship-centered will inevitably lead us to meet and interact with ever wider circles of people. The question is how we should cope with all these changes. What we must do, I think, is to actively improve our products and business models in response to the changing market.
We operate counselor-centered 'Beauty Square,' the exclusive counseling sales customer application 'Beauty Q,' and the video-centered 'Beauty Mento' through which customers can communicate with counselors. We are also striving to keep up with ongoing changes in the market and customer preferences by more actively adopting digital tools, most noticeably by reforming the payment system. Counseling sales will be able to position itself as a channel with sustainable growth so long as it continues to achieve small successes from the perspective of both customers and the wider market.
Q. What challenge or task has recently received the most attention from the Counseling Sales Division?
There have been countless innovations in the 52-year history of counseling sales, but the one thing that is yet to change is its predominant 'collection culture,' called credit. We are constantly seeking to bring about innovation in the collection culture by implementing different payment systems, particularly given the far-reaching changes in the digital environment and consumption activities. We expect that counselors will be able to take care of both sales and collection when they interact with customers, which will save time and cost and allow them to conduct sales activities for a greater number of customers, ultimately increasing their income. The Counseling Sales Division will concentrate all its efforts onto ways to bring positive change into the collection culture for the benefit of customers and counselors alike.
There have been countless innovations in the 52-year history of counseling sales, but the one thing that is yet to change is its predominant 'collection culture,' called credit. We are constantly seeking to bring about innovation in the collection culture by implementing different payment systems, particularly given the far-reaching changes in the digital environment and consumption activities. We expect that counselors will be able to take care of both sales and collection when they interact with customers, which will save time and cost and allow them to conduct sales activities for a greater number of customers, ultimately increasing their income. The Counseling Sales Division will concentrate all its efforts onto ways to bring positive change into the collection culture for the benefit of customers and counselors alike.
I first joined the company in 1994, when I worked in general affairs at the counseling sales office, which was my first encounter with counseling sales. For a long time after that, I was involved with market sales, but counseling sales has since become a much more meaningful experience to me.
The most memorable experience I have was in 2009 when I was working as the manager of the Counseling Sales Strategy Team. The company implemented a credit card affiliate program with payment deduction, which was quite new at the time. Online community activity counselors (e-Counselors) and a location-based customer development system (SSEP NAVI) were also adopted at the time. I think such attempts in digital systems have formed the foundation for the innovation we are seeing in counseling sales today.
Q. What is the most important value in your opinion?
Without doubt, 'honesty.' Department stores or retail stores are engaged in sales under direct management, while ARITAUM, ETUDE HOUSE and innisfree road shops are indirectly involved in the company. However, in the case of counseling sales, sole representation stores have owners, while sales activities are carried out by counselors; as such, it is difficult to check when counselors meet with customers, what products they sell, and how much they sell them for. Since this channel is more complicated than others and includes many distribution partners, honesty is the glue that binds the sales culture together.
Over 30% of our counselors have been working for more than 10 years, and their customers are also those who have been with us for a long time. Trust is necessary to maintain a relationship for a long time, and honesty is the basis of trust. Considering the distinct character of the Counseling Sales Division as well as sales itself, I think honesty is the most important factor in building a sustainable relationship.
Without doubt, 'honesty.' Department stores or retail stores are engaged in sales under direct management, while ARITAUM, ETUDE HOUSE and innisfree road shops are indirectly involved in the company. However, in the case of counseling sales, sole representation stores have owners, while sales activities are carried out by counselors; as such, it is difficult to check when counselors meet with customers, what products they sell, and how much they sell them for. Since this channel is more complicated than others and includes many distribution partners, honesty is the glue that binds the sales culture together.
Over 30% of our counselors have been working for more than 10 years, and their customers are also those who have been with us for a long time. Trust is necessary to maintain a relationship for a long time, and honesty is the basis of trust. Considering the distinct character of the Counseling Sales Division as well as sales itself, I think honesty is the most important factor in building a sustainable relationship.
Q. Thank you for taking the time to have this interview with us. Please share anything else that you might want to say to employees.
Long ago, Suh Kyung-bae told sales team managers, "If you think you can do it, you really can." Those words still retail their original wisdom and sagacity. The employees of the Counseling Sales Division each have their own voice and are all really smart. As long as we attend to every matter with an attitude that we can do anything, we will be able to take a step closer to achieving our dream. I wholeheartedly suggest you concentrate more on actions than words, and focus only on one thing properly.
Long ago, Suh Kyung-bae told sales team managers, "If you think you can do it, you really can." Those words still retail their original wisdom and sagacity. The employees of the Counseling Sales Division each have their own voice and are all really smart. As long as we attend to every matter with an attitude that we can do anything, we will be able to take a step closer to achieving our dream. I wholeheartedly suggest you concentrate more on actions than words, and focus only on one thing properly.
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