[IPO] Oasis "Entering New Business Based on Unique Profitability Competitiveness in the E-commerce Industry"

[Asia Economy Reporter Jang Hyowon] Oasis, the first e-commerce company to be listed, is knocking on the door of KOSDAQ. Oasis plans to expand its existing business and enter new ventures based on its competitiveness as the only company in the industry generating profits.

On the 8th, CEO Ahn Junhyung of Oasis held a press conference in Yeouido, Seoul, to introduce the company ahead of its KOSDAQ listing.

Oasis, established in 2011, is a company specializing in sourcing eco-friendly and organic products. After building its distribution experience by opening offline directly managed stores, it launched the online platform Oasis Market in August 2018 to operate a fresh food dawn delivery business.

Ahn Jun-hyung, CEO of Oasis, is introducing the company at a press conference for KOSDAQ listing held on the 8th in Yeouido, Seoul. / Photo by Oasis

Oasis is attracting attention as the only company in the fresh food dawn delivery industry that is profitable. As of the third quarter of last year, Oasis recorded cumulative sales and operating profit of 311.8 billion KRW and 7.7 billion KRW, respectively, representing increases of 19.9% and 80.7% compared to the same period the previous year.

The company attributes its ability to generate profits to the competitiveness of its private brand (PB) products. CEO Ahn Junhyung stated, “We break the stereotype that eco-friendly organic food is expensive by selling high-quality organic food at reasonable prices.”

Oasis PB products are carefully selected to meet strict internal standards such as antibiotic-free, no added colorants, and pesticide-free, and are sold at prices approximately 40% lower than similar products from other companies. PB products account for about 60% of Oasis’s total sales, supported by good quality and strong price competitiveness.

Additionally, Oasis improved its margin rate by reducing purchase costs through direct procurement based on a producer network accumulated by operating offline stores. Typically, there are first, second, and third-tier wholesalers between producers and consumers, but Oasis has the know-how to purchase directly from individual suppliers without going through wholesalers.

Furthermore, Oasis is the only company in the industry to have optimized its logistics system with a ‘combined packaging structure.’ Oasis consolidated refrigerated, frozen, and room-temperature warehouses into a single logistics center and established a picking area to enable packaging all products at once.

For example, if a customer orders milk, frozen dumplings, and bottled water, other companies would need to package three times, but Oasis completes packaging in one go, reducing labor and packaging material costs to one-third.

Moreover, Oasis independently developed the logistics automation system ‘Oasis Route’ to maximize efficiency. Oasis Route is a software-based logistics system in the form of an app that manages everything from product ordering to receiving, packaging, and delivery in one stop. Employees using Oasis Route can process up to 200 orders per day on average, which is more than six times the efficiency of other companies that handle 30 orders per person.

After listing, Oasis plans to secure growth by collaborating with large corporations. Currently, Oasis has partnered with E-Land Retail to rebuild the existing Kim’s Club online mall into Kim’s Oasis online mall and provides dawn delivery logistics agency services. It is also collaborating with various companies such as KT Alpha, Giga Genie, Home&Shopping, and K Bank by offering customized services.

In addition, Oasis plans qualitative growth by continuously discovering PB products with very high repurchase rates. Alongside fresh food dawn delivery, it aims to strengthen profitability by expanding product categories to include PB processed foods, kids’ products, and daily necessities.

The company currently provides services mainly in the metropolitan area and plans to expand nationwide by increasing regional logistics centers and offline stores. Furthermore, leveraging its IT capabilities and unique logistics centers and offline stores, Oasis plans to enter new businesses such as live commerce and quick commerce.

CEO Ahn Junhyung said, “So far, we have focused on creating a business structure that achieves stable profits and continuous growth simultaneously. Through the KOSDAQ listing, we will raise Oasis’s awareness and explosively grow into a leading e-commerce company in Korea by strengthening existing business capabilities and entering new businesses.”

In this listing, 5,236,000 shares will be offered. The desired public offering price band is 30,500 to 39,500 KRW, with a maximum expected public offering amount of 206.8 billion KRW. The public offering price will be finalized through demand forecasting targeting domestic and foreign institutional investors by today, followed by a general public subscription on the 14th and 15th, with a planned listing on February 23. The lead underwriters are NH Investment & Securities and Korea Investment & Securities.