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We bring you the latest installment of Inquivix Insights, with some great new insights from South Korea for you! This time around, we’re looking at how the top South Korean eCommerce platforms are performing. In addition, we have updates from the advertising and marketing sector as well. Whether you’re just starting out or have been in business in South Korea for a while, this is something you’ll want to check out. So without further ado, let’s get into it!
Coupang Sales Exceeded KRW 22 Trillion in 2021
Last year’s sales at Coupang, according to the firm, rose to KRW 22.22 trillion, an increase of 54% from the previous year. It has been the company’s highest sales figure since it was established in 2010. However, it recorded an operating loss of KRW 1.86 trillion due to COVID-19 conditions, infrastructure development expenses, and Coupang Eats’ investment expenditures at the Deokpyeong logistics warehouse.
Luxury Ecommerce’s “Big Three” Plan Marketing Campaigns Worth KRW 30 Billion in 2022
Must-It, Balaan, and Trenbe, South Korea’s luxury commerce “Big Three,” aim to invest at least KRW 30 billion in marketing and advertising this year. Last year, these brands were able to improve their image by featuring Korean celebrities such as Ju Ji-hoon, Kim Hye-soo, and Kim Hee-ae as TV commercial models. Luxury eCommerce sites intend to compete for first place this year with a higher budget than last year’s.
Fast Five Installs an AI-Based Outdoor Advertising Solution with Dable
Fast Five, a shared office platform, has collaborated with media technology firm Dable on an AI-based outdoor advertising solution deal. Fast Five will use Dable’s AI-based outdoor advertising technology under a business agreement with Dable to install the latter’s solution at all branches of Fast Five, while officially launching its startup marketing support service, Five Add.
Naver Joins Hands with SSG to Launch an Early Morning Delivery Service
Naver plans to integrate its first early-morning delivery service through collaboration with SSG.com’s Dawn Delivery Mall. This is Naver’s third shopping partnership, following E-Mart Mall’s and Traders’ in October and December last year. The items ordered before midnight will be delivered by 6 a.m. the next day through SSG.com’s automation logistics center NE.O. Naver Shopping users will be able to discover and purchase over 20,000 items, such as side dishes for breakfast and bakery goods, home convenience meals, etc. from SSG Food Market.
HS Ad Announces Marketing Trends in the Digital Age
In the digital age, five major keywords were identified as marketing trends by HS Ad, an affiliated advertising agency of LG.
- Another extended reality (XR)
- Decentralized commerce models: N-commerce
- Self-data services using brand platforms
- Vigilance against ESG (environmental, social, and governance) washing
- Integrated experience management.
“Double-Digit Growth” for Small and Medium-Sized Businesses
The Korea Communications Commission’s (KCC) ‘Innovative SME Broadcast Advertising Vitalization Support’ program with KOBACO to help small and medium-sized businesses boost their sales has been effective. SMEs that have a part of the program have seen a 12.9% rise in revenue and an average 7.7% increase in employment. The program offers support to small and medium-sized companies for TV advertising up to KRW 45 million (within 50% of production cost) and radio advertising up to KRW 3 million (within 70% of production cost).
Korea Center’s Biggest Performance Ever
Korea Center, an eCommerce platform, said it recorded KRW 339.4 billion in sales and KRW 17.4 billion in operating profit last year. The company’s Makeshop platform in charge of the domestic operation recorded sales of KRW 95.2 billion, a growth of 10% compared to the previous year. The advertising revenue increased by 14%. As the demand for paid broadcasts increased, “Podbang,” Korea Center’s podcast service observed a 71% jump in sales in 2021.
South Korea is a powerhouse in the eCommerce world and shows no signs of slowing down. In 2021, Coupang performed well and Naver has entered into early morning delivery services with SSG. At the same time, luxury eCommerce sites are expected to spend over KRW 30 billion on advertising, and Fast Five has initiated AI-based outdoor advertising. KCC and KOBACO’s support program has helped SMEs improve their marketing efforts and perform better.
Stay tuned for more insights on this rapidly changing world of South Korean eCommerce. In the meantime, if you’re looking to start or improve your own digital marketing campaigns, be sure to check out our services, which can help you get on the right track and achieve success in South Korea’s competitive market. Thank you for reading!