Dongkuk Steel, Online Platform 'Steel Shop' Launching in May
Targets Online Sales for All Products by Year-End
"Sales Methods Must Change After COVID-19"
[Asia Economy Reporter Hwang Yoon-joo] Jang Se-wook, Vice Chairman of Dongkuk Steel, is making a bold move in the e-commerce market. The company is creating an online platform for steel product sales and strengthening its non-face-to-face sales strategy. This is interpreted as a determination to break away from the traditional face-to-face sales method after COVID-19 and to secure even the small and medium-sized markets.
According to the steel industry on the 23rd, Dongkuk Steel will launch the online platform ‘Steelshop.com’ around the 20th of next month. Initially, thick plates and some cold-rolled sheet products will be sold online, with plans to expand the product range to include long products such as bars and shapes by the end of the year.
The strategy to strengthen online sales was personally devised by Vice Chairman Jang. He felt the limitations of marketing through face-to-face sales after COVID-19. At the regular shareholders' meeting in March, Jang stated, "The market is rapidly changing due to COVID-19, and the transaction volume in the e-commerce market has increased significantly. It is time for Dongkuk Steel’s face-to-face sales method to change," signaling the launch of the online platform business.
Dongkuk Steel expects that once Steelshop is fully operational, it will be able to expand its existing customer base, which mainly consists of large corporations, to include small and medium-sized enterprises and individuals. This is because the small and medium market in the construction sector is growing as the market for individual housing and customized small-scale sales expands.
The company is also paying close attention to the growth of the color steel sheet market, driven by the expansion of the premium home appliance market. The proportion of high-value-added color steel sheet sales in the cold-rolled sector increased from 17% in 2019 to 18.8% in 2020. The share of color steel sheets for home appliances also surged from 37.7% in 2019 to 42.5% in 2020. Dongkuk Steel’s ‘super-gap strategy,’ which competitors cannot replicate, has led to increased sales not only domestically but also in overseas markets. Operating Steelshop is expected to simultaneously enhance the product competitiveness and sales competitiveness of color steel sheets.
A Dongkuk Steel official said, "It is significant that a steel company, one of the heavy and chemical industries, is expanding sales through an online platform and extending its reach to the small and medium market," adding, "It reflects our determination to respond flexibly to the rapidly changing market after COVID-19."
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