Beyond Simple Sales, Marketing Effects
Profitability and Customer Base Remain Challenges
YouTube channels operated by domestic e-commerce companies are continuously evolving. They are no longer just channels for selling products but are now incorporating dramas and variety shows as marketing tools.
According to the industry on the 7th, CJ OnStyle recently renewed its official YouTube channel and released the web drama "Nun Tteo Boni Latte" (Woke Up to Latte). Episode 1 of Nun Tteo Boni Latte, produced as part of customer communication, depicts the struggles of a bride-to-be caused by a wedding invitation gathering. The video recorded 550,000 views within three days of upload. CJ OnStyle plans to release episode 2, "Moms' Abbreviations," highlighting the neologisms of young mothers, on the 8th.
Earlier, CJ OnStyle achieved great success last year with the live commerce program "Beutina's Life." It broke records for the highest number of views and order amounts for a live commerce program, with a cumulative 4.11 million views and 21 billion KRW in orders. Beutina's Life is an entertainment-type content that reviews products before the live commerce broadcast.
SSG.com is currently airing the fresh food storytelling campaign "Oh My God! Fresh" through its live broadcast channel. Depending on the characteristics of each product, the process of inspection and sales is portrayed as a survival audition, or a star chef visits the production area to introduce products and recipes. 11st also offers various entertainment-type content on its live broadcast channel "Live11."
The live broadcast channels operated by e-commerce companies trace their origins back to "TVOn" launched by TMON in 2017. At that time, the content mainly featured professional show hosts selling products, similar to home shopping broadcasts. Although chat windows were introduced to enhance communication with customers, the market response was not significant. However, as the YouTube market grew and various distributors entered live commerce, the content format has undergone continuous changes, reaching its current state.
These e-commerce companies are enjoying marketing effects through content that incorporates dramas and variety shows. As video consumption becomes part of daily life, video content that is more entertaining than typical online ads is more effective in introducing specific products to consumers. However, the industry also recognizes clear limitations. While product promotion effects are evident, a structure that can lead to continuous sales has not yet been established. Additionally, since the main age group consuming these videos is still in their 20s and 30s, expanding the customer base remains challenging.
An industry insider said, "Channels operated by e-commerce companies started on YouTube and now collaborate with YouTube. While some potential has been confirmed in terms of marketing and revenue, there are still many areas that need to mature before becoming fully mainstream."
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