Strengthening Products in Department Stores
Expanding Sales Domestically and Overseas
Qoo10, which has acquired the online shopping mall 'AK Mall,' is expected to focus on paving the way for domestic brands to export. Not only will it develop overseas sales channels for department store products listed on AK Mall, but it is also likely to create its own exclusive brand to showcase in the global market in the future.
On the 29th, Interpark Commerce announced that through the partnership between AK Mall and the Qoo10 Group, it plans to strengthen its presence in the global online market and provide broader sales opportunities to domestic and international manufacturers. Interpark Commerce, a subsidiary of Qoo10, signed a business transfer agreement with AK Plaza and AK Mall on the 27th. The transfer price was set at 517 million KRW. Considering that the annual sales revenue of the e-commerce division including AK Mall is 37 billion KRW and assets amount to 48.1 billion KRW, the transfer price is relatively low. This has been interpreted as a result of strategic collaboration between the two companies.
The first initiative is to support domestic manufacturers in entering the global market to revitalize the online businesses of both companies. AK Mall operates its online business by selling products from department stores located in AK Plaza, focusing on products from its partner affiliates. Qoo10 plans to leverage the platform competitiveness built around its domestic affiliates such as TMON, WEMAKEPRICE, and Interpark Commerce to promote not only domestic sales of brands and sellers listed on AK Mall but also their overseas expansion.
The sales channels linked to AK Mall products are already established. Interpark Commerce recently launched 'Inpak Shopping' in connection with Qoo10's overseas channels. This platform supports domestic sellers in entering overseas markets. By linking with Qoo10’s global infrastructure, it offers sales opportunities in countries such as Japan, the United States, Singapore, India, and China. It helps sellers enter overseas markets as conveniently as domestic delivery. The platform also features a translation system to eliminate language barriers and supports platform integration, allowing existing registered products to be transferred as they are.
Additionally, exports to the United States, Europe, and other regions are expected to be possible through 'Wish,' a global commerce platform recently acquired by Qoo10. Support from Qxpress, Qoo10’s global logistics subsidiary, is also available. Although overseas expansion requires massive investment, this can be resolved at once. An industry insider said, “Qoo10’s domestic online competitiveness, its global network spanning over 200 countries, and Qxpress’s logistics service capabilities can provide new opportunities for brands and manufacturers.”
Furthermore, since Interpark Commerce has been focusing on developing integrated private brands (PB) for the group since last year, a structure is expected to be created that leads to the overseas expansion of exclusive products or private brands unique to Qoo10. In August last year, Interpark Commerce launched more than 10 PB products, including bottled water and sketchbooks. Compared to the initial launch, the average sales volume of PB products increased by 30% as of last December, and transaction volume also rose by 53%. An Interpark Commerce official stated, “We plan to expand into health functional foods as well as sports and leisure products in the future,” adding, “We will accelerate the discovery and development of differentiated products.”
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