11th Street announced on June 6 that it had recorded sales of KRW 128.3 billion in the second quarter of this year. This represents 18.6% year-over-year growth in transactions, more than double the number of transactions in the first quarter. 11th Street analyzed that cooperation with leading domestic and foreign brands and the competitiveness of shipping such as “today’s shipment” were the main benefit.
This year, 11th Street expanded JBP with brands representing each category, and increased its product competitiveness with stand-alone products and exclusive promotions. JBP was signed with 34 brands in the first half of this year, and their first half transactions increased by an average of more than 40% compared to last year.
The “Today Shipping” service, which collects and delivers products from sellers that can be shipped on the same day after ordering, has helped to grow the transaction volume by selling 51.2 million items from approximately 47,000 sellers as of early July.
Operating deficit in q2 was KRW 5 billion, similar to q1 (KRW 4.8 billion). “The marketing costs for the market response have increased due to the prolonged event of the new Coronavirus outbreak,” 11th Street explained. 11th Street continues to grow by double-digit growth through the rebound in the product group, which is recovering demand such as leisure, fashion, beauty, and travel, and improving the search, recommendation, and shopping environment, aiming to secure profitability at the annual breakeven level.
Mr. Yi Sang-ho, president of 11th Street, said, “It was the first half of the year when we increased our partnership with major operators while strategically responding to non-face-to-face consumption trends.” He added, “We will achieve growth and profitability at the same time as the difference between 11th Street and 11th Street in an environment of excessive e-commerce competition that is costing a deficit of tens of billions.”
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