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Hey there! Welcome to Inquivix Insights, where we share the latest goings-on in the South Korean market. In this issue, we’re taking a closer look at what’s been happening in the world of eCommerce, advertising, virtual stores, and retail. We bring you updates on the latest trends in AI-driven solutions that South Korean eCommerce sites are working on. We also bring you news about how advertising in Korea is changing with the new market trends. The new seasonal changes in the retail market and updates on the virtual stores are discussed here as well. So settle in and get ready for a stimulating read!
1. Will the Media Leave Naver’s “Premium Contents”?
Naver Premium Contents, which is Naver’s premium subscription service, has opened and been in operation for a few months now. However, the channel owners say the performance is less than expected. In particular, the media, which was recruited in the early days, seems to be discussing the idea of leaving the platform. This is due to the fact that operators are thinking about whether or not to continue the platform given user reactions and earnings.
2. Naver’s Airsearch Engine Is Evolving
Naver’s AI search brand “AiRSEARCH”, which comes with a variety of AI recommendation technologies, is evolving to give better results. Even if the user enters a vague search phrase, it displays ‘smart blocks’ tailored to the user’s taste. Since the implementation of this AI technology, content consumption has increased by 265%. Naver also announced that it will implement a personalized ranking system for smart blocks and further customize the results of smart blocks based on sex and age.
3. KISA Released the 2021 Online Advertising Dispute Mediation Casebook
The Korea Internet and Security Agency (KISA) released the “2021 Online Advertising Dispute Mediation Casebook” and “Online Advertising Contract Guide” with the Ministry of Science and ICT’s Online Advertising Dispute Mediation Committee. KISA produces casebooks and contracts guides each year to educate small and medium-sized firm owners on how to handle disputes with online advertising agency contracts in order to avoid damage.
4. Golfing Season to Bring More Sales for Retailers
As winter came to an end and the golf season began in earnest, businesses are concentrating on the golfing community. More and more people are interested in playing golf, an outdoor activity, in the aftermath of COVID-19. As the number of young golfers grows, the whole distribution sector, including department shops, hypermarkets, and e-commerce firms, appears to be benefitting from particular advantages.
5. Kakao Enterprise Launches “Connect Center”
The AI customer center “Kakao i Connect Center” was officially launched by Kakao Enterprise. This is a service in which Kakao’s AI performs customer counseling duties that were previously completed by phone counselors. Through the Connect Center, businesses will be able to respond to consumers 24 hours a day, without having to worry about server construction or time and place restrictions.
6. Naver Shopping and Zepeto Increase Collaborations with Luxury Brands
Naver announced that its partnership with luxury brands through ZEPETO and Naver Shopping is continuing to grow. As of the fourth quarter of last year, Naver had 617 brand stores, up about 50% in just over a half year from 400 in June last year. Last year, luxury companies such as Louis Vuitton and Dior entered the Naver Brand Store. ZEPETO has also started working with leading luxury brands from around the world, such as Gucci and LVMH Group.
7. The Carrot Market Changes Its Advertising Fee Structure
Carrot Market, a second-hand trading and small business promotion website, has switched from a pre-exposure pricing strategy to a per-click pricing approach for its local advertising fees. Some thought the change in advertising cost policy was a move to enhance profitability, but Carrot Market claims that the restructuring of the advertising cost billing procedure is designed to increase efficiency rather than profits.
Korea and Navor are quickly becoming leaders in the field of AI, and with Naver and Kakao both implementing it into their businesses, we can expect to see more innovative changes in the eCommerce and customer service industries. In the meantime, Naver’s Premium Content site is not performing as expected. KISA has also released a casebook for online advertising disputes, which should help businesses with their advertising efforts. Carrot Market has announced a change in its advertising fee structure, so be sure to keep an eye out for that as well. In retail news, the golfing season has brought in more sales.
That’s all for now, but stay tuned because we’ll be back soon with more updates from Korea. We’ll continue to bring you updates on these and other exciting Korean business news, so stay tuned!