Selected as the Advertising Agency for Bid by Cheil Worldwide
TV Ads Executed in May Last Year... Increased Awareness and Sales
Growth Riding the Trend of Online Grocery Shopping
Estimated Sales of 400 Billion KRW Last Year
[Asia Economy Reporter Cha Min-young] "The freshest time is when the morning star rises, Market Kurly"
The dawn delivery specialist Market Kurly has once again selected Cheil Worldwide, which hit the jackpot last year with the so-called 'Jun Ji-hyun advertisement,' as its advertising agency. Having built a luxurious yet powerful image to the extent that the phrase 'Market Kurly means Jun Ji-hyun' comes to mind, synergy is also expected this year.
On the 30th, a representative from Kurly, the operator of Market Kurly, stated, "As a result of the recent advertising agency bidding, we have selected Cheil Worldwide for the second time following last year," adding, "However, since it was conducted through bidding, detailed contract information cannot be disclosed."
Market Kurly, which opened the dawn delivery market in 2015, partnered with Cheil Worldwide for the first time last year when it ran its first TV commercial. Kurly's annual sales, which were only 3 billion KRW in its first year, soared 52 times to 157 billion KRW in 2018, but word of mouth spread mainly among a trendsetter group known as 'Gangnam moms.' The brand's public recognition was relatively low.
The driving force that dispelled such concerns was the TV commercial aired in May last year. Cheil Worldwide, which produced the advertisement, incorporated the brand's signature purple main color and the rapid growth typical of startups into the commercial. Market Kurly also made a bold move for a startup by hiring big star Jun Ji-hyun. As meaningful advertising effects continued, Market Kurly's sales in May rose 14% compared to January of the same year.
The advertisement was also a hot topic online. In fact, the 30-second version of the commercial featuring Jun Ji-hyun titled 'Quality Dawn Delivery, Market Kurly Morning Star Delivery' on Market Kurly's official YouTube channel had accumulated 4.24 million views as of that day. The 'Shopping Loved by Everyone, Market Kurly' video was viewed 3.65 million times. Considering Market Kurly's subscriber count was only 10,000, it is interpreted that there was significant external traffic.
Since Market Kurly is smoothly sailing on its core service, 'Morning Star Delivery,' the synergy of the advertising campaign with Cheil Worldwide this year is also an anticipated aspect. In fact, last year's sales grew to around 400 billion KRW, estimated to be 2.5 times the 2018 figure in just one year. Additionally, due to the special demand for online grocery shopping caused by the COVID-19 pandemic, monthly transaction volume reportedly approached 100 billion KRW this year. With the surge in delivery volume, early cutoffs for dawn delivery became frequent.
However, despite external growth, profitability improvement remains a challenge due to operating losses. As of 2018, operating losses were about 33.6 billion KRW, and net losses were around 35 billion KRW. This is because the cost of building and maintaining the cold chain system that enables fresh delivery is high. Market Kurly is expanding non-food categories such as living goods, baby and child products, and pet supplies alongside its core food items.
A Kurly representative dispelled concerns by saying, "The issues caused by the dawn delivery chaos due to COVID-19 are gradually stabilizing," and explained, "Since the advertising agency contract was signed not long ago, the overall advertising planning and schedule have not been finalized, and various plans are being considered."
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