Kakao "Digital Transformation Education Triples Sales of Small Business Owners"

[Asia Economy Reporter Yuri Choi] Kakao revealed the achievements of its digital transformation education program for small business owners, 'Kakao Class,' over the past seven years on the 29th. This study was conducted by a joint research team from the Consumer Behavior Media Lab at Chungnam National University and the Life & Retail Center at Seoul National University (led by Jinmyung Lee, Professor of Consumer Studies at Chungnam National University).

Kakao Class is an educational program aimed at Kakao partners, prospective entrepreneurs, small business owners, and creators. It began in 2016 as a joint project between Kakao and the Jeju Center for Creative Economy and Innovation, and has since expanded its support regions.

Kakao Class provides training on how to enter and utilize Kakao's online shopping platform, 'KakaoTalk Store,' and shares know-how on using Kakao's service platforms. To date, a total of 2,647 participants have taken part.

According to this study, among 134 businesses that participated in the advanced course and whose sales changes could be analyzed for one year before and after the education, the KakaoTalk Store sales increased by an average of 185.7% in the year following the course, nearly tripling. Among them, 24 businesses saw their KakaoTalk Store sales increase more than elevenfold.

The research team analyzed that Kakao Class provided an opportunity to develop operational capabilities suited to Kakao Commerce and to learn channel-specific operational know-how. According to in-depth interviews, small business owners evaluated that Kakao Commerce's relatively low fees eased their economic burden and provided new opportunities for market expansion.

Jae-seung Lee, Head of the Jeju Cooperation Team at Kakao, said, “Kakao recognizes its social responsibility as a platform and strives to grow together with small and medium-sized business owners. We will continue to operate the program actively to contribute to the digital transformation of small business owners.”