CJ OnStyle Q1 Sales Up 4.5% Year-on-Year, Operating Profit at 23.9 Billion Won
Slight Profit Decline Due to Expanded Mobile Investment
Strengthening External IP Collaborations in Q2
The commerce division of CJ ENM, CJ OnStyle, announced on May 7 that its operating profit for the first quarter of this year was 23.9 billion won, representing a 7.6% decrease compared to the same period last year. During the same period, sales reached 378.5 billion won, a 4.5% increase year-on-year.
CJ OnStyle explained that its performance reflects increased strategic investments aimed at strengthening mobile competitiveness, including commerce content production and the advancement of artificial intelligence (AI).
In particular, mobile live commerce exhibited rapid growth. Transaction volume for mobile live commerce in the first quarter surged by 137% compared to the same period last year, establishing itself as a key growth driver. The expansion of traffic based on short-form content and influencers propelled this growth, while the strategy to strengthen fandom intellectual property (IP) also led to an increase in new mobile customer acquisitions.
The effect of expanded mobile investment was reflected in improved customer metrics. The number of new app installations and monthly active users (MAU) each increased by 11.8% year-on-year. With both new customer inflows and customer engagement improving simultaneously, the company said that its mobile-centric growth structure was further reinforced.
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CJ OnStyle plans to continue its growth in the second quarter by expanding fandom IP and strengthening the competitiveness of premium products. A CJ OnStyle representative stated, "We will broaden our fandom customer base by expanding collaborations with major external IPs such as the Korea Baseball Organization (KBO), the film 'The Devil Wears Prada 2,' and mega-influencers. At the same time, we aim to boost both customer inflow and lock-in effects by reinforcing large-scale campaigns and premium product sourcing. We will continue to invest in AI-based content to enhance our short-form commerce competitiveness and accelerate the growth of mobile live commerce by expanding influencer commerce based on our accumulated data."
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