CJ OnStyle Grows 'Live Broadcast' with Han Ye-seul and Ahn Jae-hyun

Intense Competition in Mobile Live Commerce Market
Leading Company Emerges Through Large-Scale Investment
"Will Become a Shopping Platform Leading Customer Preferences"

CJ OnStyle has strengthened its attack on the live commerce market by featuring famous celebrities such as actress Han Ye-seul and Ahn Jae-hyun. As the first in the home shopping industry to launch mobile live broadcasts, the company aims to leverage its accumulated capabilities to establish itself as a leading player in the mobile live commerce market.

On the 22nd, Kim Ji-hyun, Head of Growth Promotion at CJ OnStyle, said at the 'NEXT Content Commerce' strategy presentation press conference held at the CJ ENM Commerce Division (CJ OnStyle) headquarters in Dongjak-gu, Seoul, "As the number of mobile live commerce market operators increases, competition to capture customers' time is fierce," adding, "We have decided on large-scale investments to transform into a live shopping platform that can lead customer preferences."

Since last year, CJ OnStyle has introduced the 'One Platform 2.0' strategy as part of its integrated marketing strategy and focused on stabilizing it. This strategy organically combines TV, mobile, and mobile live commerce, signifying a strengthening of the mobile live commerce sector. Mobile live commerce refers to a system where celebrities sell products through live streaming, allowing purchases via mobile phones and other devices. In the distribution industry, home shopping companies, which have seen declining performance due to a decrease in TV viewership and increased broadcasting fees, are focusing on strengthening mobile live commerce.

CJ OnStyle has also confirmed achievements in the mobile live commerce sector. In the first half of the year, CJ OnStyle's mobile live commerce growth rate approached 81%. Its contribution to performance is also significant; while home shopping companies have continued to show sluggish results, CJ OnStyle recorded double-digit growth in operating profit in the second quarter, marking a substantial growth trend. Additionally, the transaction volume of mobile live commerce in the second quarter surged by 108% compared to the same period last year.

Kim said, "Even looking at China, where the mobile live commerce market is large, the growth rate of Douyin (the Chinese version of TikTok), a video shopping platform, is 41%, which is higher than Alibaba's e-commerce sales growth of 7%," adding, "Although the home shopping market environment is challenging, we expect further growth if investments continue."

According to statistics from KOSIS and others, the domestic mobile live commerce market growth rate in the first half of the year reached 27%, which is higher than the e-commerce channel growth rate of 10%.

The core of CJ OnStyle's newly introduced strategy is 'super-sizing.' Moving away from the traditional focus on product information, the company has expanded the mobile live commerce sector by combining three elements that can captivate customers: sellers, compelling content, and competitive deals. CJ OnStyle's proportion of live broadcasts generating high performance (net order amount of 10 million KRW) in a single broadcast is 45%, which is higher than the market average of 13%. Although it could have increased profits through production cost efficiency, the company’s stance is to present blockbuster-level large-scale content to increase overall traffic.

Major sellers selected include actress Han Ye-seul, singer Soyou, actor Ahn Jae-hyun, singer Sunye, and broadcaster Kim So-young. The product categories they handle are five high-engagement product groups: fashion, beauty, living (furniture, home appliances), premium baby products, and new product introductions. Jung Mi-jung, Chief Marketing Officer (CMO) of CJ ENM Commerce Division, stated, "We will create programs that can generate fandom by adding CJ OnStyle's strengths in product curation and sourcing competitiveness."

The performance goal is to secure a 5% market share in the mobile live commerce market. Sung Dong-hoon, Head of the E-commerce Business Division, explained, "Generally, when the market share reaches 5%, it is considered a meaningful business operator," adding, "Although the investment scale is large, we expect effects beyond that."

Meanwhile, broadcasts will be held daily at 9 PM. The first broadcast will be on the 26th and will be simultaneously streamed on the CJ OnStyle mobile application (app), website, and the dedicated live commerce YouTube channel 'Hot Deal Set Net Open Run.'