The Secret to Selling New Products Well: 'Early Release?'

The running shoes 'Tivat Run' pre-sold by Bellop Sports in 2019 through Kakao Makers. Photo by Bellop Sports

[Asia Economy Reporter Moon Hyewon] Food and fashion companies are gaining popularity with a marketing strategy that tests new products through social funding and officially launches them if consumer response is positive. As social funding services gain popularity among the MZ (Millennial + Z) generation, this marketing approach is attracting attention as a two-birds-one-stone strategy that both funds new products and enjoys promotional effects.

According to an analysis of data on food and fashion category products within Kakao Makers on the 25th, among 365 food pre-release products from January to July this year, 256 (70%) were pre-released through Kakao Makers. In the case of fashion products, 158 out of 282 products, or 56%, were pre-released. For food, large corporations pre-launched 25 out of 31 products, accounting for 81%, while small and medium enterprises (SMEs) and startups released 232 out of 334 products through pre-orders, reaching 69%.

In the fashion category, 43 out of 68 products (68.3%) were pre-released, and among SMEs, 115 out of 219 products (52.5%) were pre-released, showing that most products are made and sold through pre-orders.

Kakao Makers is Kakao Commerce’s made-to-order platform. When companies upload product development or sales plans, users pre-purchase them, allowing companies to produce limited quantities and gauge consumer reactions first. While mainly SMEs and startups have used this as a channel for new product launches, recently large corporations have also joined. A Kakao Makers official stated, "The increasing number of large brands pre-releasing new products on Kakao Makers is analyzed to be because even large brands with stable supply and inventory management can reduce product failure rates through made-to-order methods."

The most talked-about food product is Maeil Dairy’s recently launched new product, ‘Easily Digestible Milk’ with ‘Domestic 5-Grain Misutgaru.’ According to Maeil Dairy, before the official launch, it was pre-sold on Kakao Makers on the 30th of last month, and all 7,000 boxes (24 packs each) prepared were sold out within two days of the launch, showing great popularity.

GTS Global’s watersports item specialist brand, Bellop Sports, pre-sold Korea’s first shape-memory T-bar run on Kakao Makers in 2019 and sold 20,000 pairs within two months.