[비즈한국] Due to low birth rates and digital transformation, the stationery market is shrinking rapidly. Traditional stationery companies are looking for new revenue streams through business diversification. Morning Glory has recently attempted a transformation by expanding into the furniture market, but there is growing interest in whether it can reverse the sluggish performance of its previous new business ventures.
Can Stationery Company Morning Glory's Furniture Gambit Work?
Stationery maker Morning Glory has entered the furniture market. Recently, the company introduced two types of office and study chairs aimed at office workers and students. While the product range is currently limited to chairs, the plan is to expand the lineup to include desks and bookshelves in the future. A Morning Glory official explained, "We reviewed entry into the furniture market because we determined we could expand our business scope to the overall study and work environments of students and office workers who use our stationery products," adding, "Our strength lies in price competitiveness compared to products from other companies with similar specifications."
Morning Glory is attempting to move away from a stationery-centric business structure and transform into a lifestyle brand. In 2018, it ventured into budget phone SIM card and cosmetics businesses, and in December 2024, it entered the hygiene products market by launching facial tissues. While expanding its merchandise business using its own character 'Moongs Panda,' it is now broadening its business reach by adding a furniture product line this year.
However, these new business expansions do not appear to have led to significant results. The cosmetics business, which began in 2018, was withdrawn within a year, and the budget phone business is effectively discontinued. The aforementioned official stated, "The sales proportion of new businesses is not yet significant," adding, "Hygiene products are seeing the most positive response among our new ventures. The product range has now expanded to eight items, and we plan to continue increasing it."
The company's performance continues to decline. Morning Glory's sales were 42.9 billion KRW for the 2023 fiscal year (July 2022 to June 2023), but they decreased to 40.7 billion KRW in the 2024 fiscal year and dropped further to 38.1 billion KRW in the 2025 fiscal year. Profitability has also worsened. As of the 2025 fiscal year, Morning Glory recorded an operating loss of 770 million KRW, which is an approximately 57% increase compared to the previous year's operating loss (490 million KRW).
Seeking a Breakthrough Through Diversification… But Challenges Abound
Analysts suggest that the sluggish performance is rooted in a general stagnation of the stationery market. The number of students has decreased due to the low birth rate, leading to lower demand for stationery than in the past. The shift toward digital learning environments has also accelerated the market contraction, as the use of paper notebooks and writing instruments has dwindled. An industry official remarked, "Stationery usage dropped sharply when schools were closed during the pandemic, and the market stagnation has not recovered as digital learning environments have expanded since then."
In this changing environment, the overall stationery industry is looking to discover new growth engines. Monami, considered the top stationery company in Korea (005360), also sought business diversification and entered the cosmetics market in 2019. The strategy was based on the idea that the ink formulation technology and coloring know-how accumulated over 60 years in writing instruments are similar to the manufacturing of color cosmetics such as eyeliners and brow products.
However, seven years since its entry, the performance of the cosmetics business is still considered to have fallen short of expectations. The cumulative sales of its specialized cosmetics subsidiary, Monami Cosmetics, for the third quarter of last year were only 2.84 billion KRW, and it recorded a net loss of 3.47 billion KRW during the same period.
Some in the industry suggest that the image of being a "stationery-specialized brand" hinders these companies from achieving success in new businesses. They argue that brand perceptions built over a long period around writing instruments and notebooks do not easily translate to new product categories. Analysts note that consumers find it difficult to trust or feel attracted to chairs or cosmetics made by a stationery brand as much as they would products from established specialized brands.
It is also pointed out that the newly entered markets are already red oceans with fierce competition. It is not easy for stationery companies that joined the cosmetics or furniture industries late to secure meaningful market share. Experts suggest that while securing price competitiveness or aggressive marketing is inevitable to gain share, it will be difficult to sustain such investment while company performance is weak.
Lee Eun-hee, a professor of Consumer Science at Inha University, said, "Since the furniture market is currently in a general downturn, there is a question as to whether this entry is an appropriate strategy," adding, "Expanding into various product categories, such as furniture accessories, could be one strategy." She further evaluated, "Most importantly, the brand image is key. You cannot keep the old-fashioned image of an existing stationery brand; the challenge lies in creating a perception that the brand is fresh and new to consumers."
Morning Glory plans to consistently expand its new business ventures to find new growth drivers while maintaining the competitiveness of its core stationery business. A company official stated, "We are reviewing various possibilities to expand into new areas based on our existing stationery business," adding, "Currently, we are in the stage of continuing various attempts to discover new businesses.".