The Secret to 'Ohouse' Becoming the Industry Leader

'Ohouse' is South Korea's No.1 platform for interior design and furniture, holding an unrivaled position in the market. As of 2023, the company reported a revenue of 240.2 billion KRW, a 31% increase compared to the previous year, while operating losses decreased by more than half to 17.5 billion KRW from 51.6 billion KRW in the prior year. Achieving both increased revenue and reduced losses during an economic slowdown is a rare feat, especially given the continuing decline of the domestic furniture and interior market.

How did 'Ohouse' achieve such remarkable growth? This success stems from its ability to develop its own marketing strategy rather than merely following conventional commerce strategies. Let's dive deeper into the unique strategies that set 'Ohouse' apart.

User-created interior design renderings on the "3D Interior" page of 'Ohouse'.

Success of the Content-Driven Community Strategy

Lee Seung-jae, CEO of 'Ohouse' stated, "Our solid foundation allowed us to achieve both profitability improvements and revenue growth despite a challenging market environment." One of the cornerstones of this solid foundation is the "content-driven community" strategy. Rather than simply being a platform for selling furniture and interior goods, 'Ohouse' actively fosters a community where users can share their home decoration experiences and exchange information. By encouraging customers to upload their interior projects completed with 'Ohouse' products, the platform has created a gallery-like space for others to explore.

User-generated interior content on 'Ohouse'

'Ohouse' also features interactive elements like likes, bookmarks, comments, and sharing options for its content. Popular posts are highlighted on the platform's main homepage, providing a seamless way for first-time visitors to browse engaging content while naturally building a desire to purchase featured products.

Popular content displayed on 'Ohouse' main homepage.

If the homepage only displayed promotional banners or discount offers, users might leave after a quick purchase or be deterred altogether. By showcasing user-generated content, 'Ohouse' turns these posts into virtual sales representatives, effectively retaining users on the platform.

The 3C Flywheel: Content, Community, and Commerce

A representative from 'Ohouse' explained, "Users who engage with both content and products have twice the conversion rate compared to those who only browse products." Why is this the case?

'Ohouse' has enhanced its ecosystem by adding small nudges to encourage purchases. For example, users can tag furniture (+) in their posts. Readers can click these tags to navigate to detailed product pages, making the purchasing process seamless.

Through its "3C" strategy—connecting Content, Community, and Commerce — Ohouse has optimized its revenue model. Additionally, user-generated content fosters trust among consumers, making it easier to build loyal customers compared to brands that solely focus on commerce.

Content uploaded on Ohouse's "3D Interior" page.

Cutting Costs While Increasing Revenue with the 3C Strategy

By leveraging the 3C flywheel strategy, 'Ohouse' has simultaneously boosted revenue and achieved cost efficiency. The community-centered approach allows users to share their interior design ideas, which organically generates content that attracts more users interested in interior design. This cycle not only strengthens the community but also reduces advertising costs by driving word-of-mouth referrals.

In fact, the number of customers who spent over 5 million KRW annually on 'Ohouse' increased by more than 60% last year. This indicates that customers are willing to spend more on a wider variety of products and higher-priced items.

Ji Young-hwan, CFO of 'Ohouse,' remarked, "In 2023, despite external challenges, we have embarked on greater aspirations, expanding beyond interiors into lifestyle and from South Korea to global markets." He added, "In 2024, we will continue pursuing growth and profitability through efficient and strategic investments." The remarkable revenue milestones of 'Ohouse' spark anticipation for its journey in 2025.

A mid-century modern home designed by a couple featured on Ohouse.

What's Next for 'Ohouse'?

After successfully building a thriving community and increasing revenue, what will 'Ohouse' tackle next? According to industry sources in November, 'Ohouse' launched its first original furniture brand, "Layer," 10 years after its inception.

Layer is a brand designed, planned, and produced entirely by 'Ohouse'. The company revealed that it developed Layer based on elements highly desired by its customers. The process involved multiple customer surveys and in-depth research to gather insights, which were then incorporated into product planning and development.

1. Conducted pre-launch customer surveys.

2. Aggregated insights from in-depth research.

3. Reflected customer needs in product planning and development.

An industry expert commented, "While the brand's success depends on its marketing strategy, targeting Ohouse's user base should ensure its success. If they showcase stylish furniture that resonates with their interior-savvy audience, the brand will likely thrive."

Layer, the furniture brand launched by 'Ohouse'.

Apply the 3C Flywheel Strategy to Your Business

'Ohouse' offers a 3D Interior page where users can design spaces and arrange furniture virtually. Some posts have garnered over 55,000 views, demonstrating their popularity. This feature allows users to easily experiment with placing desired furniture in their home layouts.

The 3D Interior feature on 'Ohouse'.

As shown above, the "3D Interior" feature uses the Archisketch solution to provide users with a virtual interior design experience, making it easier for them to create content. This activates the community, allowing 'Ohouse' to attract more users and boost sales.

If you're a furniture company looking to reduce costs and achieve steady sales growth, consider adopting the Content-Community-Commerce (3C) Strategy like 'Ohouse'. It's the most efficient way to optimize costs and increase purchases effectively.

📌 Inquire About Archisketch Services