'Dong-A News' Daeyeon CEO Interview
㈜대연 (Daeyon Corporation) is a company that is likely to have a connection with consumers interested
in sports apparel and equipment. Daeyon operates 75 stores nationwide,
including Jordan Seoul, the only Nike concept store in Korea, and SNKRS Hongdae.
The CEO of Daeyon, Mr. Kim Dae-ho, has a unique background.
He majored in mechanical engineering and initially worked as an engineer at a large corporation
before entering the distribution industry.
When he founded the company in 1995, the distribution industry was not widely recognized or accepted in society.
However, Mr. Kim, who was a track and field athlete in his youth and had a strong interest in sports equipment,
believed that the sports equipment market had significant growth potential.
With this conviction, he made continuous investments in the market.
As a result, Daeyon, which had initial annual sales of less than 1 billion KRW,
has experienced annual growth of over 20% and is now a company with sales reaching 300 billion KRW in 2021.
The distribution and retail market may be increasingly dominated by online sales, but there is still a substantial consumer segment that values the experience of products in physical stores.
In light of this, CEO Kim believed that as stores grow in size, they can have a stronger presence in the offline market. Indeed, in recent times, large retail chains and offline-based businesses have been transforming into spaces that provide experiences. Daeyon is at the forefront of this trend in the sports retail industry.
Daeyon has a strong reputation and presence in the Gyeonggi Province's Bucheon and Incheon regions, where its headquarters is located. This is due to the company's ongoing commitment to various community engagement activities since its establishment.
Among these activities, the annual internal donation event called 'DalGO Na Challenge' is a unique initiative. Daeyon employees use the Nike Running app to track their runs and calculate distances. Based on the distance covered collectively, Nike products are donated to the local community.
(Note: "DalGO Na Challenge" is a play on words, combining "Dal," which means "moon" in Korean and sounds like "달" (Nike), and "GO," indicating action. So it represents "Let's Nike.")
CEO Kim emphasized that he places greater importance on the participation of employees in charitable activities than on the financial aspect. He mentioned that it's more about the significance of employees coming together to contribute. He expressed his hope that these activities would serve as motivation and inspiration for employees in both their personal lives and work.
The company has recently donated approximately 80 million KRW worth of sportswear and footwear to low-income children in Bucheon, showing its commitment to community support.
Daeyon also invests significantly in employee training and development. CEO Kim stated his belief in providing continuous opportunities for employees to grow. He emphasized that personal growth translates to the company's growth and success.
CEO Kim has been organizing workshops since 2006, where all employees participate in presentations, Q&A sessions, evaluations, and training every quarter. In addition to basic training in tools like PowerPoint, Excel, and service-related skills, the company also provides education in more advanced areas such as programming (Python), and business intelligence (BI) to pave the way for the company's future.
He mentioned plans to provide programming education to all employees so that they can acquire this skill.
He emphasized the goal of filling the skill gaps based on job positions within the company.
Moreover, Daeyon supports employees who wish to pursue higher education.
If an employee with 5 years of experience decides to enroll in a university or graduate school,
the company covers their tuition fees in full. Since 2010, 11 employees have graduated through this program,
and currently, 12 employees are pursuing higher education.
CEO Kim expressed the company's willingness to support employees
who want to continue their education without any conditions.
Since 2015, Daeyon has introduced an internal competition called OCA (Operation Contest Awards).
In this competition, when a theme is set, each store creates videos, drawings, or other works related to the theme.
The team that performs the best is selected, and an awards ceremony is held.
This event reflects Daeyon's corporate management philosophy,
which places a strong emphasis on employees' personal growth.
Recently, recognizing the increasing and diversified demands for learning and growth among employees,
Daeyon has transitioned to an online education platform starting in 2021.
This transition allows employees to take the courses they want online.
CEO Kim stated that the company will focus on supporting employees
in their self-development and emphasizes having goals in life.
He regards the keyword "goal-oriented" as crucial in his leadership.
Meanwhile, the company is adapting to efficient work methods in line with the digital age,
offering programming education.
They are committed to creating a foundation for corporate growth
by constantly pondering and investing in the fields of the Fourth Industrial Revolution.
CEO Kim stated, "Our goal is to achieve an annual revenue of 1 trillion KRW by 2030,"
and he added, "We are considering overseas expansion projects based on aggressive investments
and our unique know-how."
In conclusion, he expressed his hope that Daeyon would be recognized as a happy company
that shares the best experiences and energy and becomes a place where young people aspire to work.
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