Cheongdam Global "E-commerce Total Solution Platform for Global Consumer Brands"

[Asia Economy Reporter Jang Hyowon] Cheongdam Global, an e-commerce platform company (CEO Choi Seokju), is a company that provides total solutions from discovering, developing, and sourcing products of global consumer brands to overseas online and offline distribution.

On the 16th, CEO Choi Seok-ju is introducing the company at the Cheongdam Global press conference.

On the 16th, Cheongdam Global held a press conference related to its KOSDAQ listing at the Conrad Hotel in Yeouido. At the conference, CEO Choi Seokju personally introduced the business content and vision and took time to answer questions.

Since its establishment in November 2017, Cheongdam Global has achieved rapid growth, recording consolidated sales of 144.3 billion KRW and operating profit of 9.7 billion KRW last year.

The core strengths include ▲ the capability to provide bidirectional solutions to platforms and brand companies through the utilization and analysis of big data ▲ a sourcing sales network for global consumer brands ▲ and strong partnerships with global e-commerce platforms such as China's JD.COM and Alibaba.com.

Amid the rapidly growing e-commerce boom, Cheongdam Global strategically entered the Chinese market, which accounts for more than half of the global share. As a result, it has achieved rapid growth with an average annual growth rate of about 123% over the past three years, establishing a solid foundation in both scale and profitability.

The core of providing customers with a ‘One-Stop Total Solution’ covering development, distribution, and marketing is ‘data.’ In particular, Cheongdam Global is the only domestic company active as a first-tier vendor among only seven companies worldwide on China's JD.COM. A first-tier vendor not only supplies products but also has the authority to monitor real-time sales data and respond using sales analysis data by product, time, and consumer.

Through such analysis and targeting, Cheongdam Global actively provides consulting and solutions from the product development and sourcing stages of brand companies. The platforms where Cheongdam Global has secured distribution networks as a first-tier vendor include six platforms, including JD.COM and Alibaba.

Furthermore, based on its global product sourcing capabilities, it is pushing to enter global platforms such as Amazon and eBay. Cheongdam Global is currently selected as an official supplier for overseas versions of JD.COM platforms in Southeast Asia, Europe, and the Middle East and is conducting sales activities. It also plans to enter global mega platforms such as Amazon, eBay, and Qoo10 in the future.

Cheongdam Global launched ‘Bysuco,’ the only cosmetic e-commerce platform in Korea, in June last year.

Existing parallel imports, overseas direct purchases, and proxy purchases in the market had limitations in product assortment or issues such as frequent stockouts, slow delivery, no exchange or return, and counterfeit products. Cheongdam Global solved these problems through direct contracts with upper-tier vendors in distribution and an efficient IT system.

As a result, Bysuco can provide fast delivery within three days despite being an overseas direct purchase through a stable supply chain. It has achieved rapid growth through reasonable shipping fees with bundled shipping between brands and product composition based on data to understand trends and demand. As of the end of April last year, just a few months after its opening, it had accumulated more than 24,000 registered members. Bysuco aims to become a global beauty platform in the future.

Cheongdam Global is expanding its product supply platforms to reach a wider range of customers while diversifying product categories and channels. In addition to beauty brands, it has recently completed expansion into infant products and health functional foods on JD.COM and plans to expand further into electronics and fashion sectors. It also plans to diversify channels by opening a global version of the Bysuco app, which was launched as D2C.

After the KOSDAQ listing, part of the public offering funds will be used to establish a domestic logistics industry base and hub. Within 2022, it plans to acquire a bonded warehouse in Korea and build an automated logistics system to establish a rapid delivery process. Besides approximately 30 billion KRW allocated for facility funds, the funds will also be used to purchase products for diversification, including cosmetics, infant products, and health functional foods.

CEO Choi Seokju stated, “Although Cheongdam Global has achieved rapid growth since its founding, it is prepared to further expand global regions and product categories in the future,” adding, “We will become a company that demonstrates results as a global e-commerce platform.”