'Special Market' Shakes Up the E-commerce Market

Regional-Based Secondhand Trading 'Danggeun Market' · Handmade Goods Trading 'Idus'
Steady Growth Despite COVID-19

[Asia Economy Reporter Kim Cheol-hyun] Market platforms targeting specialized markets and customers are emerging as 'dark horses' shaking up the e-commerce market. Platforms such as 'Danggeun Market,' which has a unique concept of region-based secondhand trading, and 'Idus,' which exclusively handles handmade products, have significantly grown and established their presence in the market despite the spread of the novel coronavirus (COVID-19).

According to Backpacker on the 7th, the online handmade market Idus recorded a record high monthly transaction amount of 17.3 billion KRW last month, and its monthly active users (MAU) exceeded 4 million. Recently, it also surpassed a daily transaction amount of 1 billion KRW for the first time, showing a steep growth trend. Idus is an online marketplace where over 16,000 registered artists sell their handmade 'works' such as handcrafted accessories, interior items, cosmetics, and perfumes. The product categories extend to about 30, including agricultural, livestock, and marine products sold directly by producers engaged in farming or fishing.

Based on this, Idus has steadily grown every quarter without a single negative quarter since its service launch in 2014. The average monthly transaction amount in the first quarter of this year was 14.1 billion KRW, a 34% increase compared to the fourth quarter of last year. Currently, Idus has about 9 million app downloads, and its monthly active users are rapidly increasing, surpassing 4 million in total with 2.25 million on the app and 1.75 million on the web. The monthly repurchase rate among users is also approaching 80%.

Idus explained that handcrafted goods and handmade food items are the most frequently traded, and last month, ahead of May, the month of family, there were many transactions of gratitude gifts such as carnations, unique money envelopes, and handmade cakes. Especially this year, due to the impact of COVID-19, the demand for handmade cotton masks has also surged. Kim Dong-hwan, CEO of Backpacker, which operates Idus, said, "The domestic handmade and handicraft market is growing significantly, and as sales channels open, the activities of talented artists are steadily increasing. We will strive to create a better industrial ecosystem and promote the excellence of domestic works overseas."

Danggeun Market, meaning 'the market near you,' is also rapidly growing with a business model that allows convenient secondhand trading based on the user's residential area. Danggeun Market's monthly active users reached 7 million in April. Launched in 2015, Danggeun Market recorded 1 million monthly users in 2018, three years after its launch, then 3 million in 2019, and reached this record in April this year. The app's cumulative downloads have reached 19 million, and cumulative registered users have surpassed 10 million.

Supported by this, Danggeun Market's transaction amount increased from 4.6 billion KRW in 2016 to 50 billion KRW in 2017, 200 billion KRW in 2018, and 700 billion KRW in 2019. This represents a 152-fold increase in three years. Especially after expanding nationwide service in 2018, secondhand direct transactions have been active in Seoul, Gyeonggi Province, Jeju Island, and Daejeon in that order, showing balanced growth nationwide.

Kim Yong-hyun, co-CEO of Danggeun Market, stated, "This year, we plan to launch various services that allow Danggeun Market users to connect more with their neighborhoods and neighbors, such as revamping the local advertising system and expanding neighborhood lifestyle services. We aim to expand beyond being the number one mobile secondhand trading platform to become a regional lifestyle platform."