[Business trend] E-commerce Korean e-commerce improvement strategy
Photo_Getty Image Bank
Last year, domestic e-commerce platform companies were caught in a dilemma, unable to achieve both ‘outward growth’ and ‘substantial management’. The emergence of the first domestic e-commerce initial public offering (IPO) company was promising, but ultimately failed. It is interpreted that the industry has worsened due to the increasing number of consumers closing their wallets due to high prices and the aggressive marketing of overseas e-commerce companies. The e-commerce industry as a whole is in full swing preparing to stand up.
[E-commerce on the rise again] ① ‘Service name change’ carrot, hyperlocal focus… Run more this year
*Source_Digital Daily
*Graphic_Biz Watch
"Even one more second”… E-commerce bets on ‘experience’
*Source_Biz Watch
Curly, 11th Street, and Ali are ‘in-app games’
Today’s House and Carrot are ‘community’ and ‘content’
Purpose of residence time and expansion of new customers
The e-commerce industry is strengthening ‘customer stay-type in-app services’. This is to increase stay time and attract new customers through services such as games and communities. It is as if supermarkets and department stores are trying to increase store attraction by strengthening experiential elements. It is predicted that in the future, it will become important for e-commerce to occupy customers' time like offline channels.
From games to ‘neighborhood’ gatherings
Online as well as offline
Please stay for one more second
An industry official said, "As the e-commerce industry has recently faced increasing difficulties due to deficits, it is analyzed that they have begun to come up with self-rescue measures by introducing in-app services. The purpose is to increase customer retention time to encourage additional purchases and increase advertising revenue." He explained. He continued, “However, what is interesting is that Coupang, the number one company in the industry, is not very active in in-app services.”
E-commerce seeks to improve physical constitution, ‘focus’ on losing fat
*Source_Maeil Ilbo
Improve profits through workforce reductions, business reductions, and fee increases
11th Street began salty management to improve profitability.
*Image_Curly
According to the industry on the 11th, e-commerce companies have recently been trying to improve profitability by withdrawing from low-efficiency businesses, reducing SG&A expenses, reducing staff, and increasing commissions. As there is a risk that profits will deteriorate if the focus is on external growth, it is expected that even if the transaction amount is small, the company will build internal stability and have the ability to survive independently. Coupang, which is steadily increasing its influence amid the slowing e-commerce market growth, is expected to pay close attention to the movements of Chinese platforms that have joined the Korean market with ultra-low prices.
- 11th Street is reducing low-efficiency businesses one by one. It is interpreted as a plan that focuses on improving profitability and corporate value through salty management in line with the situation of going through a forced sale process. ‘Ticket 11th Street’ and ‘Home & Car’ services have also ended.
- Beauty platform ‘Reconciliation’ Birdview also took the plunge for restructuring in October last year.
- WeMakePrice also paid three months of monthly salary to those wishing to change jobs in May last year and reduced its workforce. This is interpreted as a measure to seek manpower efficiency as the body increases after being absorbed into Q10.
- Musinsa’s reselling platform Soldout has begun to secure profitability by increasing fees.
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