E-Business Platforms
Cafe24, Korea's largest e-commerce platform, jointly hosted a seminar with Meili Inc., the leading fashion e-commerce platform in China, on Aug. 5 to introduce the “UNI Service,” a new form of e-commerce business model that has recently become very popular among Chinese young female consumers looking to buy Korean fashion and cosmetics products through Chinese e-commerce platforms.
At the seminar held at FKI Tower in Yeouido, Seoul, Lee Jae-suk, CEO of Cafe24, and Chen Qi, CEO of Meili, noted that both Mogujie and Meilishuo, China’s leading fashion platforms and subsidiaries of Meili, benefit from operating an interactive live-streaming show called “UNI Service.”
The UNI Service features Internet celebrities called Wang Hongs who are Internet stars having built fame through social media and introduce consumers to beauty and fashion products as opinion leaders.
Min'en, who participated in the seminar, introduced herself as one of the most powerful Wang Hongs in China, followed by millions of fans. She said people follow her live streaming of makeup, dressing and her daily lifestyle, and interact with her through online discussion threads.
Given the soaring popularity of Korean women’s fashion and makeup styles in China, Wang Hongs share Korean fashion and makeup tips with Chinese consumers. In fact, Chen Qi said thanks to the influence of Hallyu (Korean Wave), around 70 percent of the company’s total sales is derived from sales of Korean fashion and cosmetics brands.
Cafe24 CEO Lee said that Korean fashion and cosmetics companies, who are looking to launch or have already started an e-commerce business in China, will benefit by adopting the UNI business model and working with Wang Hongs.
An official at Cafe24 added that registration with Cafe24 enables Korean companies to easily access Mogujie or Meilishuo and start e-commerce businesses featuring UNI on these platforms. Through partnership with Meili since 2014, Cafe24 can help simplify the evaluation process that Korean companies would face in the lead-up to e-business launching, and help them receive discounts in commission fees and contract deposits.
As of Aug. 3, Statistics Korea notes internet-based direct purchases of Korean products by Chinese shoppers surged 103.1 percent on-year. Regarding the surge, Chen Qi mentioned some newly developed trends in the Chinese consumer market that may contribute to explosive growth. He pointed out the rise in purchasing power among female consumers aged between 23 and 30 and their increased exposure to global fashion trends, especially that of Korea.