CJ O Shopping Expands Private Brands... Enhances Mobile Competitiveness

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[Asia Economy Reporter Lim Chunhan] CJ O Shopping is expanding its mobile private brand (PB) business, which started last year, in all directions. It is differentiating itself by targeting niche markets tailored to customer preferences, moving away from the traditional competition based on lowest price, volume, and delivery speed. Subsidiaries with separate sales channels, such as Artworks Korea and Dada M&C, are also enhancing their own PB capabilities based on customer analysis and product sourcing skills, thereby increasing their mobile competitiveness.

According to CJ O Shopping on the 15th, the PB business has been mainly operated around fashion on TV home shopping, which is premised on mass sales. Since launching the first PB on TV home shopping in 2000, the scope has steadily expanded to household goods and health functional foods recently. Last year, the proportion of PB products at CJ O Shopping was 18.2%, up 2.8 percentage points from the previous year.

Since January, CJ O Shopping has established a dedicated organization to develop small-quantity products that suit the diverse tastes of the cell market. The mobile PB planned in this way saw its first-quarter handling volume this year grow nearly threefold compared to the same period last year. The annual handling volume target is also set at 2.5 times that of the previous year. Representative mobile PBs include Tailor Scents, a scent interior specialty brand, Musebella, a jewelry brand, and Idea Zip, a household goods specialty brand.

Artworks Korea, a subsidiary of CJ O Shopping, and Dada M&C, a media commerce specialist company, have also succeeded in improving their financial status and attracting investment based on mobile PB competitiveness. Artworks Korea, which operates the fun curation shopping mall Funshop, recorded a profit for the first time last year since being acquired by CJ O Shopping in 2017. Funshop is a unique commerce platform introducing distinctive products targeting men in their 30s and 40s. Dada M&C signed an investment contract worth 21 billion KRW with Mirae Asset Global Investments in March. Dada M&C’s representative PBs include the home appliance brand Triple Black and the slim-type massager brand Your Peace.

A CJ O Shopping official said, “We are striving to enhance the fundamental competitiveness of our business with trendy products that suit various customer tastes,” adding, “We will propose new lifestyles with differentiated products and continue to provide valuable shopping experiences to customers in the mobile market following TV.”

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