BTuen, an AI and big data specialized company (CEO Taeil An), has signed a formal contract to establish a joint venture in Korea together with XOOX LAB Inc. and Medicloud.
With the contract to establish the domestic joint venture ‘XOOX Korea,’ BTuen can now expand the pet-based SNS XOOX PET service, which has been gaining significant attention in the United States, exclusively into the Korean and global markets. The company stated, “‘XOOX Korea’ represents the final partnership outcome of commercializing a pet-exclusive service that integrates bio with domestic ICT technology based on research achievements in the U.S.,” adding, “We plan to focus on targeting the market in line with consumer value-centered trends.”
Despite the global industrial slowdown caused by the pandemic, the worldwide pet industry continues to grow steadily. According to Market Insight, a global market research firm, the global pet market reached $245 billion in 2021 and is expected to grow to $261 billion (341 trillion KRW) this year.
In line with this global trend, the government is currently reviewing the enactment of the ‘Pet-Related Industry Promotion Act.’ As the number of pet owners increases and consumption for animals becomes more sophisticated, the related industry market is emerging as a new growth industry.
The government plans to promote ‘three major strategies’ to foster the pet-related industry, creating new production and consumption and expanding exports. The three major strategies include ▲ fostering four key industries ▲ building growth infrastructure ▲ industrializing overseas exports. On December 9, 2023, the Ministry of Agriculture, Food and Rural Affairs announced the ‘Pet-Related Industry Promotion Measures’ at an emergency economic ministers’ meeting, demonstrating the government’s swift action at the national level.
In ‘XOOX Korea,’ BTuen will be responsible for business operations as well as big data, AI technology overall, and data utilization. XOOX LAB Inc. will serve as a foothold for overseas expansion, and Medicloud will handle research and development in the BIO business sector.
‘XOOX Korea’ plans to supply the first pet urine diagnostic kits globally in earnest starting in 2024. BTuen will handle sales and algorithm development, Medicloud will manage manufacturing and development, and XOOX LAB Inc. will oversee global distribution and supply.
The urine test kit analysis service allows users to take pictures of the urine test kit with their smartphones through an app, and an algorithm recognizes the kit image to convert the results into data, providing personalized health management and various data services.
The company explained that just considering the domestic market for urine diagnostic kits, with approximately 7 million registered pet owners and an estimated cost of 10,000 KRW per urine test kit (based on four tests per month), the annual market size is about 3.3 trillion KRW.
A BTuen representative said, “Upon establishing the joint venture, we plan to recruit service users through a large-scale global promotion. Along with launching various customized pet medical services such as remote pet medical care, urine diagnostic kit apps, and health management services, we will release a pet-exclusive tablet PC utilizing pet IDs,” adding, “We also plan to start total service support in ICT service areas including music, video, and games.”
As expectations for the Korean launch of the ‘XOOX PET’ service are high in the industry, it is anticipated that providing diverse and differentiated services to consumers will improve the health and quality of life of pets. Furthermore, the company explained, “Beyond a simple profit business, this is a project aimed at contributing to society and leading social returns on profits.”
Meanwhile, recently, U.S.-based XOOX LAB Inc. has been actively launching various pet-exclusive apps such as ‘XOOX PET’ and ‘XOOX M (Music),’ running the ‘$1,000,000 challenge’ campaign through these apps, which has shown high participation rates centered on famous global influencers.
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