ARTICLE 2019 Atomy- at the WFDSA
Opening of Atomy Park, First to Secure Consumer Centered Management (CCM) Certification in the Industry
The year 2019 marked Atomy’s 10th anniversary, and there were many accomplishments to be celebrated: the establishment and opening of Atomy Park, the grand opening in Russia, the launch of an Atomy class for young adults, founding Chairman Han-Gill Park’s inauguration as president of the Korea Direct Selling Association and joining the CEO Council of the WFDSA, being awarded the 100 million Export Tower Award, earning Consumer Centered Management certification, the approval of the Lifestyle Design Lab as a Business-Affiliated Research Institute, renewal of Skincare 6 System to Skincare System “The Fame,” creation of the Contents department, recruitment of renowned drummer Lino, and exceeding 1 trillion KRW in domestic sales according to the Korea Fair Trade Commission.
01 Atomy Park
On April 26, 2019, Atomy Park, the new home of Atomy headquarters, was opened after ten years since the company’s founding. The building will serve as a base and training facility for 5.5 million Atomy members worldwide for the next 100 years.
Atomy Park is a 4-story building with lower level which covers 26,430㎡ of lot area and 14,413㎡ of total building area. It features a Dream Hall with a capacity of 1,300, a book café in the lobby, and other member-friendly spaces such as a garden and leaders’ conference rooms as well as areas for employees including a swimming pool, gym, and workspaces with different themes. The office was created as a complex space with areas for both members and employees combined together in an open concept design that focuses on communication and one-heart collaboration.
Atomy Park’s architectural excellence was recognized with prominent awards. It received the Korean Institute of Architects prize at the 2019 KIA Convention & Exhibition and was an Architecture MasterPrize winner in the Mixed Use Architecture category among more than 1,000 entries in architecture, interior design, general design and landscape architecture from 68 countries.
02 Atomy Russia Grand Opening
On May 3, 2019, Atomy held the grand opening ceremony of Atomy Russia at the Moscow Trade Center in the country’s capital. In his remarks before the 1,300 members in attendance from Russia and around the world, Chairman Park stated that Atomy’s success story will be continued in Eurasia through Russia.
Atomy is the first Korean direct selling company to enter the European direct selling market. It has now gained a foothold in attracting consumers in the Eurasian Economic Union. The Branch Director of Atomy Russia said, “Success in Russia could guarantee Atomy’s success throughout the rest of Europe.”
03 Atomy Class to Appeal to Young Adults
Atomy is set out to win over the hearts of young adults in South Korea. The first “Atomy Class for Millennials” was held on March 2nd, 2019, to help those in their 20s and 30s find their goals in life and introduce Atomy and its vision to them. This class will be a channel to deliver Atomy’s messages in a compact yet fun way for young adults who may not be interested in traditional seminars.
In an effort to focus on fun experiences and communication, various events and areas like a mini-game zone, interaction zone, and experience zone were set up to appeal to the young generation. Atomy hosted four classes in 2019 to impart the true story of Atomy to more than 4,200 people in their 20s and 30s. A representative for Atomy Class said, “We will continue to draw in the 20s and 30s generation of young people with ‘pop & fun’ content and show them Atomy as a tool for their dreams and vision.”
04 Chairman Han-Gill Park, 11th President of KDSA & Member of WFDSA CEO Council
Han-Gill Park was inaugurated as the 11th president of the Korea Direct Selling Association (KDSA). In the general meeting held on February 13, 2019, the Chairman of Atomy was appointed unanimously. In his remarks, Park stated, “The direct selling business is the most humane distribution model that can compete against the platform business model, which has risen with the onset of the Fourth Industrial Revolution.” He also added, “Atomy is open to sharing its experience and knowhow it has acquired from successful expansion into the global market.”The founder of Atomy is now also a member of the CEO Council for the World Federation of Direct Selling Associations (WFDSA), which is a forum that meets the challenges and opportunities of the industry. The council discusses issues, makes decisions, and supervises the affairs of the federation. It is comprised of the CEOs of the leading international direct selling companies such as Amway, Herbalife, and Nu Skin, with Magnus Brännström, CEO of OriFlame, named current chairman of WFDSA. Han-Gill Park talked about the present situation of the industry in South Korea and shared examples of Atomy’s success at the general meeting held in Mexico in November 2019.
05 The First Retail Company to Receive $100M Export Tower Award
With exports exceeding 100 million USD in 2019, Atomy received the $100M Export Tower Award at the 56th Annual Trade Day ceremony held on December 5, 2019 in Seoul. It is the first time for a retail company to receive this award, not to mention the first network marketing company. Atomy received a $5 million Export Tower in 2011, $10 million in 2013, $20 million in 2015, $30 million in 2016, $50 million in 2017, and $70 million in 2018. This year, the company received the $100 million Export Tower as it recorded sales of $110 million in exports between July 1, 2018 and June 30, 2019. Starting with the opening of the U.S. regional office in 2010, Atomy has now entered 13 overseas markets, including Australia, Indonesia, and Russia in 2019.
06 Atomy’s Lifestyle Design Lab accredited as a Business-Affiliated Research Institute
Atomy’s Lifestyle Design Lab has been accredited as a Business-Affiliated Research Institute by the Korean Ministry of Science and ICT. The different research areas of industrial design include the development of cosmetics packaging, the design of household appliances, and research on interior/space design. It is the first time for a corporate Research and Development (R&D) center to be approved in the field of design, which has raised the brand value of Atomy products.
The Lifestyle Design Lab was presented the Germany iF Design Award in 2019 for Atomy Absolute Hair Care Set. It also received bronze for the 2017 Spark Design Award in Product Design Identity and won the Korean Minister of SMEs and Startups (MSS) for the 2017 Good Design Award, which is sponsored by the Ministry of Trade, Industry & Energy and hosted by the Korea Institute of Design Promotion. The Lab also presented products of Atomy at the 2019 Design Korea Festival, where it received the presidential prize from the Korea Institute of Design Promotion for its “Skincare System The Fame.”
07 CCM Certification, the First in the Industry
Atomy’s great efforts toward customers’ success has paid off. Atomy is the first company in the network marketing industry to obtain Consumer Centered Management (CCM) certification which is evaluated by the Korea Consumer Agency and accredited by the Korea Fair Trade Commission.
The CCM certificate is a national certification which recognizes that a company’s management activities are carried out and improved upon continuously with consumers’ interests at its center, and can be reissued in every 2 years. The purpose of the policy is to raise awareness of consumers’ rights and strengthen corporate competitiveness by constantly improving products and services from the perspective of consumers. It also helps create a virtuous cycle market, thereby promoting a mutually beneficial culture of companies and consumers.
08 Launch of Skincare System “The Fame”
Skincare 6 System, the product representative of Atomy’s Absolute Quality Absolute Price policy, has been renewed as “Atomy Skincare System ‘The Fame.’” It is an upgraded product with 3 new hydration-enhancing ingredients that can strengthen the basic function of the skin added to its predecessor’s 4 existing major technologies. Stabilized microcapsules deliver moisture deeper into the skin with quicker absorption. This skin care system acquired an “Excellent” grade from Dermatest, a renowned dermatology lab in Germany.
The new ingredients added to The Fame are panthenol that helps prevent dehydration and calm the skin, 5 types of hyaluronic acid that are multi-hydration ingredients with first-grade stability verified by the Environmental Working Group, and ceramides that help maintain skin moisture.
The Fame consists of 5 items: a toner to calm skin without irritation, an eye cream for sensitive skin around the eyes, an essence of highly concentrated nutritious formula, a lotion to coat the skin smoothly, and a nutrition cream that gives a flawless finish to the skin with excellent coverage.
09 Launch of Atomy ENM for Business with Culture
Atomy Entertainment and Media (ENM) announced its official start with Dream Hub Festival on October 26, 2019. ENM is led by a renowned drummer, Lino. The department will assist in the success of Atomy members with video content and creative entertainment, and perhaps even discover and nurture talented new “culture creators.”
The launch of Atomy ENM would change the style of Atomy’s Success System by adding an entertainment and cultural dimension to the traditional system to provide members with time for joy and healing along the path toward success. It will also play a part in spreading the Korean culture through Atomy’s global network and serve as a venue for the convergence of cultures of the different regions where Atomy is located.
10 Domestic Sales Exceeding 1 Trillion KRW
Atomy’s domestic sales in Korea will undoubtedly exceed the 1 trillion KRW mark. According to Atomy’s accounting department, the sales were recorded at 970 billion KRW by November. When estimated sales from December is added, it is undeniable that the total revenue of 2019 will pass 1 trillion KRW. The company’s revenue surpassed 1 trillion KRW the year before based on the consolidated audit report, but the net domestic sales of 2018 was 970 billion KRW.
For reference, the annual sales reports published by the Korea Fair Trade Commission show the sum of net domestic sales plus value-added taxes of companies. However, revenue in the audit report published annually in April includes the amount of exports, but not value-added taxes. The consolidated audit report also includes sales from some overseas regional offices. Therefore, a company’s total sales amount can vary depending on which report is used.