Source: Lotte Hi-Mart

The home appliance market in South Korea is facing strong headwinds. According to data released by Statistics Korea, sales in the domestic appliance market fell by 7.5% year-on-year in Q1 2025. Between April and May, the decline was even steeper at 9.1%. Each year, sales are decreasing, and the drop is becoming more pronounced.

While the market experiences this wave of negative growth, there’s one company that continues to see steady growth in operating profit — Lotte Hi-Mart.

Source: Lotte Hi-Mart

Lotte Hi-Mart’s 2025 Performance

Lotte Hi-Mart operates over 310 stores nationwide, focusing primarily on offline retail while also offering online shopping. Beyond selling appliances, the company provides value-added services like appliance repair and professional cleaning.

Source: DealSite

In Q2 2025, Lotte Hi-Mart recorded $448 million in revenue and $7.9 million in operating profit. In comparison, Q2 2024 revenue was $444 million, with operating profit at $2.1 million. While revenue rose slightly by 0.8%, operating profit surged by an impressive 275%.

Why Lotte Hi-Mart Continues to Grow During a Recession

What’s the secret behind Lotte Hi-Mart’s “earnings surprise” in the middle of an economic downturn? The answer lies in its brand promise:

We take care of your lifetime appliance life.

This isn’t just a catchy marketing phrase — it’s a genuine commitment to helping customers choose appliances wisely and ensuring they can use them with confidence for years to come. To deliver on this promise, Lotte Hi-Mart follows three key strategies.

Source: Lotte Hi-Mart Godeok Branch

Strategy 1: Mobile Specialty Experience Store “MOTOPIA”

Lotte Hi-Mart is introducing experience-based stores designed to maximize customer engagement. While most offline stores allow customers to test products, its mobile specialty experience store, MOTOPIA, takes it to another level.

• Personalized Consultations: Recommendations for mobile devices and plans are tailored to the customer’s age group — children, teens, adults, or seniors — as well as their usage patterns and budget. Every detail is considered to suggest the optimal product.

• Diverse Experience Zones: MOTOPIA features a mobile gaming zone and a mobile audio listening station, where customers can fully test device performance. In the gaming zone, customers can try VR, monitors, and controllers to find the perfect fit.

MOTOPIA allows customers to experience products in depth, helping them find the right device for their needs. As a result, the Lotte Hi-Mart Godeok branch saw its monthly average mobile device sales increase more than eightfold compared to other locations since opening.

Source: Lotte Hi-Mart

Strategy 2: “Customer Care Service” for Over 10 Years of Worry-Free Use

Lotte Hi-Mart’s customer relationship doesn’t end at the point of sale. The company supports customers throughout the entire product lifecycle with its Customer Care Service, designed to ensure appliances can be used for over a decade with peace of mind.

• Appliance Repair: Any appliance purchased from Lotte Hi-Mart can be repaired, regardless of brand.

• Professional Cleaning: Essential for hygiene, appliances like air conditioners, washing machines, and refrigerators receive thorough cleaning services.

• Warranty Insurance: Covers repair costs for two years after purchase to protect against unexpected breakdowns or accidents.

This creates a positive perception among customers: “If I buy from Lotte Hi-Mart, I can use my appliance for years without worry, even if it breaks.”

Source: Lotte Hi-Mart Bunpyeong Branch Naver Blog

Lotte Hi-Mart’s New Strategy: “3D Built-In Planner Solution”

In August 2025, Lotte Hi-Mart introduced Archisketch’s 3D Built-In Planner Solution to 150 of its 319 stores. Why? Because customers face specific doubts before purchasing large appliances.

Take a customer looking to buy a dishwasher: they may find one that’s beautiful, high-performing, and well-priced, yet hesitate to buy because of questions like:

• Will it fit in my kitchen?

• Where should I place it for the best look and flow?

Large appliances can cost from several thousand to tens of thousands of dollars. These purchases are big life decisions, often lasting a decade or more. Without clear answers, customers may walk away.

The 3D Built-In Planner addresses these concerns head-on, turning hesitation into confident purchasing decisions.

Source: Lotte Hi-Mart Daeyeon Branch Naver Blog

Place Appliances in a Virtual Replica of Your Home

Rather than using generic floor plans, Archisketch loads the exact layout of the customer’s home using precise government-provided data.

Source: Lotte Hi-Mart Daeyeon Branch Naver Blog

Customers can then select wall and flooring designs to match their actual interiors, creating a realistic 3D model.

In this model, customers can experiment with appliance placement, adjust sizes, and even check harmony with existing furniture.

Source: Lotte Hi-Mart Daeyeon Branch Naver Blog

They can view both a 2D plan and a fully rendered 3D image, allowing them to see how the appliance will look in their home — no guesswork required.

This process eliminates problems like wasted space or mismatched sizes before purchase, helping customers make faster, smarter buying decisions.

Source: Lotte Hi-Mart Daegu Yulha Branch Naver Blog

Boosting Efficiency for Store Staff

Store staff also benefit greatly. Previously, they had to verbally assure customers — “This refrigerator will fit in your kitchen” — but doubts often lingered. Now, a single 3D rendering replaces lengthy explanations.

When customers see their own kitchen with the new appliance in a realistic 3D view, uncertainty disappears. Purchase rates increase, and returns or exchanges drop significantly.

Source: Lotte Hi-Mart Jukjeon Branch Naver Blog

One store manager shared,

When I showed a customer the 3D Built-In Planner, they immediately said, ‘Now I can picture it at home — I’m excited,’ and made the purchase on the spot. The consultation time was much shorter, too.

Beyond Interior Products — Appliances, Furniture, and More

Archisketch isn’t just for interior design products. It works with appliances, furniture, lighting, and home décor. It’s ideal not only for large retail chains like Lotte Hi-Mart, but also for furniture brands, interior design companies, real estate firms, and remodeling businesses.

Its CRM features let staff send customers a 3D floor plan link and product quote after the consultation. This keeps the sales conversation going even after the customer leaves the store.

“In the second half of 2025, we plan to expand our regular care customer base and make this the turning point year for our business.” — Lotte Hi-Mart

Archisketch is proud to be part of Lotte Hi-Mart’s turning point. If your business is ready to create its own turning point during tough economic times, Archisketch can help you start that journey.

👉 Request a Demo for the 3D Built-In Planner