[Asia Economy Reporter Yuri Kim] Market Kurly, which has achieved a valuation of 4 trillion won, is strategically expanding its 'beauty' product category ahead of its IPO next year. Having driven its current corporate value mainly through the food category, the company has identified the rapidly growing beauty sector as its next growth engine for sustainable development.
◆Beauty Grows 220% This Year
According to Market Kurly on the 3rd, sales volume of beauty products from the beginning of this year through November increased by approximately 220% compared to the same period last year. In October, the peak shopping season, the company recorded its highest-ever sales volume. Market Kurly has increased the proportion of non-food products from the low 20% range last year to around 30% this year. This is to expand the growth momentum built around food into non-food categories. Among these, the growth rate of the beauty product category is outstanding, being 2 to 4 times higher than other non-food categories. This year, sales volumes of home appliances increased by 130%, kitchenware by 113%, and daily necessities by 60%.
Market Kurly introduced beauty products in 2017, focusing on daily necessities such as body wash and toothpaste. Currently, skincare products account for the largest share at 30%. The brands available range from premium brands like Amorepacific's 'Sulwhasoo' to cost-effective brands popular among the MZ generation (Millennials + Generation Z) such as 'Kiss Me' and 'TIRTIR'. Sales of men's beauty products are also steadily increasing.
◆Full Ingredient Disclosure + Dawn Delivery Advantage
Considering the shopping tendencies of its main customer base and the characteristics of its Saetbyeol Delivery (dawn delivery) service, Market Kurly believes the beauty product category is the next suitable growth engine. Since the ingredients used are important for beauty products, Market Kurly discloses all ingredients of the beauty products it sells in the product descriptions, appealing to its main customers?women in their 30s and 40s. Market Kurly stated, "We conduct tests on employees one week before the weekly product committee meeting; everyone personally uses the products to verify their effects and carefully checks the ingredients. Knowing that the verification process is stringent upon listing, customers respond that they trust and confidently purchase beauty products."
The advantage of dawn delivery also contributes to the growth of the beauty product category. If customers urgently need cosmetics or makeup products, they can order by 11 p.m. the previous day and receive the products by 7 a.m. the next day. Additionally, customers can conveniently purchase beauty products while shopping for groceries without opening a separate beauty application (app). Many customers visit Market Kurly to conveniently purchase gifts for occasions such as birthdays and wedding anniversaries, which they might have forgotten amid their busy daily lives.
◆4 Trillion Won Pre-IPO Valuation... '+α'
Market Kurly recently succeeded in raising 250 billion won in a pre-IPO investment round, increasing its corporate valuation to around 4 trillion won. Compared to the 2.5 trillion won valuation recognized in July, the company's value has risen by 60% in just four months.
Beauty products have higher profit margins than fresh foods, raising expectations for improved operating profits as the business expands. Last year, Market Kurly's sales reached 953 billion won, and it is reported that the company recorded sales in the first half of this year equivalent to last year's full-year sales. However, the company is still operating at a loss. Last year's operating loss was 116.3 billion won.
Market Kurly's cumulative number of subscribers has surpassed 9 million. The repurchase rate of new customers is about three times higher than that of competitors in the same industry. Transaction volume exceeded 1 trillion won last year and is expected to reach 2 trillion won this year. The company is also preparing to enter the open market. To this end, it acquired the electronic payment gateway (PG) company 'Paybot' last September.
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