Some 14 years since it adopted its unique knowledge-oriented management, retail giant E-Land is seeing the positive results of its efforts, overcoming the sluggish domestic economy by increasing global sales
December 23, 2013 Leave a comment
2013-12-22 18:13
E-Land expands global portfolios
By Park Ji-won
Some 14 years since it adopted its unique knowledge-oriented management, retail giant E-Land is seeing the positive results of its efforts, overcoming the sluggish domestic economy by increasing global sales.E-Land, launched in 1980 as a small clothing store, recorded significant sales this year with 10.4 trillion won ($9.88 billion), up 9 percent year on year, according to the firm. It also posted a 600 billion won operating profit, up 27 percent in the cited period.
This year was also memorable for the firm because it set many records. The firm’s sales is expected to reach a record high 3.1 trillion won this year, which accounts for more than 30 percent of its entire business, the highest portion in history.
“The firm’s strategic management fundamentally changed the entire company,” company spokesperson Yun Gyeong-hoon said.
Its unique management strategy boosts employee participation and productivity by encouraging employees to share ideas. The firm adopted this management system at the end of 1990 following the Asian financial crisis.
Through the projects, such as “One Project for Every Individual” and “Project Festival,” employees can contribute to the company by providing ideas for things that are currently lacking but necessary in the firm. Employees contribute ideas as individuals or as groups.
The best projects are implemented throughout the entire firm and in its overseas branches. Experts say the firm’s encouragement of employee ideas is a good example of how to change a vertical firm-employee relationship into a horizontal one and makes the firm stronger than hierarchical companies.
For example, the knowledge E-land accumulates in China is applied to all its Chinese branches.
“Knowledge management is hard, but it gives us the confidence to overcome the difficult business environment since it enables us to store knowledge from our experiences in our DNA,” Yun added.
“We will continue to put much effort in converting our field experiences into knowledge management.”
The firm aims to reach 1 trillion won in operating profit in the coming years by more actively pursuing three pillars: exporting its SPA (Specialty Retailer of Private Label Apparel) brands to foreign markets, expanding domestic retail channels and growing its hotel business.
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