SK Stoa Turns Profitable in Q1... Secures Top Spot in Industry

[Asia Economy Reporter Seungjin Lee] SK Stoa has succeeded in turning a profit in the first quarter of this year, rising to the top position in the T-commerce industry.

SK Stoa announced on the 18th that its sales in the first quarter of this year reached 61 billion KRW, a 52.8% increase compared to the same period last year. Operating profit recorded 4.5 billion KRW, marking a successful turnaround to profitability. Both sales and operating profit in the first quarter of this year ranked first in the industry.

Since its spin-off from SK Broadband at the end of 2017, SK Stoa surpassed the annual break-even point (BEP) last year, its second year of operation. SK Stoa explained that this was the result of simultaneously expanding both scale and substance through aggressive recruitment of key talents, the introduction of ‘SK Stoa ON,’ the first cloud-based interactive service in home shopping, and the launch of the cost-effective fashion private brand (PB) ‘Helen Karen,’ offering differentiated products and services.

In particular, while the focus until last year was on platform and business expansion, this year the company is concentrating on achieving results based on that foundation.

◆ Strengthening product competitiveness through timely programming and differentiated sourcing

SK Stoa analyzed that its quick response to changes in consumer trends caused by COVID-19 was instrumental in the sales growth in the first quarter. It immediately stopped broadcasting travel products, which accounted for about 5% of programming last year, and focused on selling product categories such as rentals, food, daily necessities, and educational services, thereby improving performance.

The growth of the fashion private brand ‘Helen Karen,’ launched last year, was also remarkable. Helen Karen, which sold out during its first broadcast, has gained popularity through word of mouth, increasing its handling amount by 12% compared to last year. Currently, in the S/S season, it continues to perform well, ranking first in repurchase customers among SK Stoa’s women’s fashion brands.

Goods from SBS TV programs (Stove League, Handsome Tigers) exclusively sold by SK Stoa also attracted attention by selling out immediately upon release. SK Stoa plans to continue collaborating with SBS to plan and exclusively sell broadcast products.

Sales performance of products aimed at expanding sales channels for small and social enterprises is steadily increasing. Notably, the ‘Jeju Dam-eun Jokbal’ sales broadcast conducted in cooperation with the Daejeon Economic and Trade Promotion Agency in March achieved a handling volume increase of 300%, drawing attention.

◆ Providing differentiated services through expansion of customer contact channels

In the untact era, SK Stoa improved profitability by expanding customer contact channels and conducting differentiated marketing for each channel. First, it enhanced product competitiveness through partnerships with various specialty malls and ‘shop-in-shop’ collaborations. It strengthened the mobile app product lineup by partnering with Boribori, a specialty mall for infants and children, as well as Half Club and Hi-Mart. Additionally, by entering open markets such as 11st, Gmarket, Auction, Naver Smart Store, and Coupang, sales through partnerships increased by 235% compared to the same period last year.

Mobile handling volume in the first quarter grew by 139% compared to the same period last year. This was the result of diversifying the product portfolio, operating a customer membership system, and promoting various mobile-exclusive promotions such as Special Price, 24 Time Deal, and Stoa Mart. In particular, for tangible products, mobile orders accounted for 35% of total orders, indicating a steady increase in the mobile business share.

The growth of ‘SK Stoa ON,’ a new distribution platform gaining attention by utilizing SK Planet’s media cloud, is also remarkable. Since its launch at the end of March last year, SK Stoa ON has continuously expanded IPTV coverage, and the number of users is rapidly increasing. As of May, sales performance through SK Stoa ON has already exceeded 120% of last year’s annual results, with the number of customers purchasing products increasing by approximately 327% and sales amount increasing by about 320% compared to the same period last year.

◆ Providing differentiated media commerce through cooperation with SK ICT family

SK Stoa has also focused on providing differentiated services by leveraging the synergy of SK Group’s information and communication technology. It encouraged SKT membership sign-ups by linking SKT IDs and enhanced customer convenience by reducing cumbersome registration, login, and payment processes through SK PAY payment and simple login. In January, it attracted attention by selling home appliances in a virtual studio applying 3D graphic virtual reality (VR) technology for the first time in the industry.

Building on the growth in the first quarter of this year, SK Stoa plans to achieve ‘annual industry No. 1.’ Especially as mobile consumption increases, the goal is to expand broadcasting distribution capabilities to mobile and secure a clear advantage in the industry with differentiated products and services such as exclusive and PB products.

To this end, SK Stoa will strengthen the competitiveness of TV shopping products on mobile and launch differentiated mobile live services within the year. It aims to discover new business models unique to T-commerce and grow into a media commerce operator that encompasses all generations.

It will also focus on discovering synergies among SK Group affiliates. It plans to continuously apply new technologies such as the AI speaker NUGU, AR, and VR to its business and provide customized product recommendations tailored to the latest consumer trends. Furthermore, it will work to enhance performance by expanding synergy with 11st and discovering and exclusively selling affiliate products such as Walkerhill Hotel kimchi and SK Broadband’s Playsongs Home.

Yoon Seok-am, CEO of SK Stoa, stated, “Until now, we have laid the foundation for the T-commerce business as a fast follower, but from now on, we will strive to strengthen SK Stoa’s competitiveness as a first mover.”

This content was produced with the assistance of AI translation services.