Total turnover of Cafe 24 (CEO Lee Jae-seok) from global e-commerce markets is expected to surpass $5.35 billion (6 trillion KRW) this year. It is expected that it will make its biggest performance in transaction this year due to high growth of internet commercial transactions and application of new technologies that are linked to AI (Artificial Intelligence) and Big Data.
It is calculated that turnover of Cafe 24, which occurred from its platform, during first half of this year from global e-commerce markets is about $2.50 billion (2.8 trillion KRW). Its turnover from first half of this year is about 20% more than that from first half of last year. Amount of its entire turnover has increased due to increase in number of online shopping malls in South Korea and other countries that are established based on Cafe 24’s solution.
Cafe 24’s turnover has grown by 18% annually since 2014. It is expected that its turnover this will be around $5.79 billion (6.5 trillion KRW), which is more than 20% increase from last year, due to many successful incidences of online shopping malls not just in South Korea but also in foreign countries.
Cafe 24 is an e-commerce platform that can establish shopping malls in South Korea and foreign countries. It provides services such as foreign operating agency, global marketing, and global distribution and delivery that are necessary for online shopping malls through one-stop method. One can push for shopping mall business in global markets if he or she has creative ideas and products. Currently about 1 million online shopping malls entered foreign markets through Cafe 24.
Including automatic analytical service called ‘Edibot’, Cafe 24 is working on enhancing its technologies by introducing Big Data and AI technologies one after the other. It has also established global network by working with Japan’s YGL (Yamato Global Logistics), Singapore’s Quantum Solution, and Taiwan’s ECpay.
Cafe 24 emphasized identity of its brand by recently changing its name from Simplex Internet to Cafe 24. It also announced its plan to become a listed company on stock markets as it has become the first business in South Korea to correspond to ‘conditions of South Korean Tesla’. Although Cafe 24 is making losses overall, it is a company that can be listed on stock markets as it shows high promise of growth.
Cafe 24 is planning to change into South Korea ‘Shopify’ in the future. Shopify, which is a Canadian e-commerce solution company, is a huge company that is currently sitting on the third place based on market shares in North American e-commerce market. After being listed on New York and Toronto stock markets in 2015, it is seen as a company that is currently valued at $8.91 billion (10 trillion KRW).
“South Korean shopping malls that have differentiated products and creative contents are being recognized of their competitive in global markets and are becoming successful.” said CEO Lee Jae-seok of Cafe 24. “We are planning to enhance our e-commerce platform continuously in order to become a successful partner of these shopping malls.”
Staff Reporter Yoon, Yeeseok | pioneer@etnews.com
