Inquivix Insights No. 21 – March Issue 2022

Welcome to the 21st issue of Inquivix Insights! In this issue, we take a look at some of the key trends and happenings in the South Korean marketing world for March 2022. We explore how video is becoming an increasingly important part of online marketing. We also bring you news on how businesses are using AI to create immersive customer experiences. As always, we hope you find this information useful and informative.

1. KOBACO’s First AI Advertising Support “AISAC” Service

For the first time in Korea, KOBACO announced “AiSAC” (AI analysis System for Ad Creation), an AI-based advertising creation support system. The goal of the AiSAC project was to develop a technology that integrated advertising content data and AI image recognition. It’s got a 500,000-entry metadata archive and a storyboard creation service that produces a new image when you enter a storyline.

2. Seven Open Markets, Including Naver and Kakao, Subjected to Corrective Orders by the Fair Trade Commission

The FTC issued corrective orders on seven open market platform operators, including Naver, Kakao, 11th Street, eBay, Interpark, Coupang, and Timon. According to the Electronic Commerce Act, consumers must be informed of the seller’s name, representative name, address, phone number, e-mail address, and business registration number. However, the aforementioned businesses did not properly supply the information asked for.

3. January Online Shopping Reaches KRW 16.5 Trillion with 76% Sales from Mobile Shoppers

According to the National Statistical Office, online shopping transactions amounted to KRW 16.5 trillion in January, an increase of 11.5% from the same month last year. Mobile shopping activities have increased by 17.5% from the previous year to KRW 12.49 trillion. The proportion of mobile shopping transactions within online purchasing has reached an all-time high as mobile commerce using smartphones increases. Mobile shopping transactions made up 76% of all online purchases, breaking the previous record high set in 2013 when mobile-included statistics began to be recorded.

4. Naver Gift Introduces the “AI Recommended Message” Function

Naver announced that it has incorporated its own AI “Hyperclova” into the Naver Gift service. When a consumer sends a present using Naver’s Gift service, this “AI Recommended Message” feature will generate message suggestions. Users may pick a message card to send with the present and utilize the ‘AI recommendation message’ function at the stage of composing a gift message. The AI will suggest the best message for the product type, the intention to give it, and the receiver. The user can select and alter any of the suggested text.

5. Former TMON Chairman Launches ‘Prism’ Combining Social Media and Ecommerce

RXC has launched a retail media platform called “Prism” that combines social networking and e-commerce. RXC was founded by Yoo Han-Ik, the former Timon Chairman. The Prism retail media platform enables shopkeepers to sell products and deliver brand messages via brief videos and live broadcasts of less than 60 seconds, such as TikTok and YouTube shorts.

6. eCommerce to Strengthen the Cosmetics Industry

The eCommerce industry is focusing on improving the cosmetics industry’s competitiveness. This is because demand for cosmetics is expected to increase along with the resuming economic activity. Because of the suspension of quarantine passes and the relaxing of social isolation rules, the daily social movement has grown considerably.

7. Mesh Korea Vroong Participates in Naver Fulfillment Platform

Vroong, an IT-based general distribution and logistics brand run by Mesh Korea will join Naver Fulfillment Alliance (NFA), an online fulfillment data platform created by Naver. Mesh Korea plans to provide Vroong’s complete logistics services to small and medium-sized business owners who have entered Naver Smart Store. Vroong offers fast real-time delivery, early morning delivery, and food delivery, as well as fulfillment service capabilities.

Conclusion

It’s been an eventful few weeks in the world of eCommerce, with businesses finding new and innovative ways to improve their operations. AI is playing a big role, with KOBACO’s AiSAC and Naver Gift’s Hyperclova both making waves. Online shopping activity continues to increase, with mobile shopping now making up over three-quarters of sales. eCommerce is incorporating social media elements for better marketing opportunities, while the cosmetic industry makes its debut in online retail. Vroong has partnered with Naver to provide better logistic support for SMEs, and the FTC has taken action to safeguard consumers.