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Welcome to the latest April issue of Inquivix Insights. In this edition, we take a look at how artificial intelligence is changing the face of business in South Korea, both now and in the future. We also explore some of the challenges and opportunities that come with eCommerce. We also bring you news on ways in which South Korean companies are staying ahead of the curve when it comes to these rapidly evolving markets. Enjoy!
Kakao Talk Introduces a Gift Shopping Basket
The eCommerce service, Kakao Talk Gifts has introduced a new shopping basket feature. The gift box function was first introduced with mobile exchange vouchers. With the new shopping basket feature, users can purchase and send gifts. This new function enables the users to buy and send gifts and other types of products through Kakao Talk Gift.
Controversy over Fake Goods Splits the Fashion Industry
Following the conclusion of the controversy surrounding Musinsa and Cream’s counterfeit T-shirts, the fashion sector is split. Samsung C&T and Shinsegae International, which import luxury items, anticipate demand for genuine products to grow. In the meantime, other import platforms are strengthening their inspection systems.
Shinsegae starts integration of SSG Dotcom and G-Market
Shinsegae Group is accelerating the integration process by combining membership, promotion, and early morning delivery of SSG Dotcom and G-Market Global. Analysts claim that, in addition to Naver and Coupang, the top two e-commerce firms, they have begun to solidify their third-tier league. However, some believe that it will be difficult to reach the top without some hard work.
B2B SaaS Companies Enter Directly into the Media
Cases of directly operating media, where content is uploaded on alternative platforms and shared through social media, are emerging one after another among business-oriented software as a service (B2B SaaS) companies. Shopify released Shopify Studio and produced programs dealing with discovery channels and founder stories, while a representative B2B SaaS firm, Salesforce, unveiled Salesforce Plus, a video streaming service.
Kakao Mobility Reveals Its Taxi Allocation Algorithm
With its taxi service distribution algorithm being released on the internet by Kakao Mobility, other platforms are also expected to increase transparency. According to Kakao Mobility, AI is used to distribute taxi drivers with the shortest predicted arrival time (ETA). This AI combines parameters such as the average number of trips completed per day, the number of times the driver has not met the customer, the driver’s rating, and the acceptance rate of dispatch.
Seoul Metropolitan Government Supports Subway Advertisements for ‘Small Business and Youth Startups
The Seoul metropolitan government has announced that it will support small company owners, budding startups, and non-profit organizations by utilizing public media such as subways. The metropolis has over 8,000 print news sources such as subway inner corners and street vendors, as well as 110 video media, such as citizen bulletin boards, subway station media boards, and video equipment for municipal facilities.
Early Morning Deliveries by Timon
Timon will begin early morning delivery as well since it has become a part of eCommerce competitiveness. Timon announced that it has teamed up with Tim Fresh, a logistics firm that specializes in cold chain delivery, for the early morning delivery market. Through this agreement, Tim Fresh’s cold chain capabilities and e-commerce know-how will be combined to help launch a collaborative initiative of a dedicated early morning delivery system.
Krw 50 Million Fine for Back Commercials
A bill has also been submitted that would impose penalties on the Metaverse platform for “back advertisements” and require “customized advertisements” to observe the Personal Information Protection Act. While it is critical to safeguard consumer rights and interests, some experts believe that self-regulation should be given precedence over legal rules. The bill would impose a fine of up to 50 million won for posting on the Metaverse platform for behind-the-scenes advertising, which does not disclose that a firm has agreed to accept money or products.
Naver Cream Grows and Introduces Commissions
Naver Cream, an e-commerce reseller platform, has begun to grow its business by purchasing a high-end trading platform and charging commissions. In the midst of all this, the firm is also making significant efforts to improve further. The delivery fee will be increased by 500 won, and a 1% brokerage charge will be imposed. There’s also talk of expanding the brand to high-end items beyond sneakers.
The South Korean market is innovative and always finds new ways to increase business. The firms are always striving to improve and offer better products. They have been effective in using technology to create a more efficient way of doing business. The use of online platforms has allowed them to reach a wider audience, and they continue to grow their businesses by expanding their product lines and services. New features like Kakao Talk Gift’s shopping basket have changed the way of shopping. The success of these companies is a result of their willingness to change and improve.
Inquivix is always on the lookout for new and innovative business ideas and market trends, and we will continue to provide insights into the South Korean market. Stay tuned for more!