Balaan accounts for nearly half of all online luxury goods sales in Korea

The Korea Times

The Korea Times

Business

Tue, September 26, 2023 | 07:47

Companies

Balaan accounts for nearly half of all online luxury goods sales in Korea

Posted : 2023-02-28 08:25

Updated : 2023-02-28 18:21

Actress Kim Hye-soo poses in an online ad for Balaan / Courtesy of Balaan

By Kim Jae-heun

Balaan said Tuesday it racked up 680 billion won ($513.4 million) in transactions last year, up sharply from 315 billion won in 2021, as more people purchased luxury bags and other high-end items through the online platform.

Given the fact that the scale of the domestic online luxury market reached 1.5 trillion won in 2022, nearly five out of every 10 luxury items ordered on the internet were purchased through Balaan.

The company said its solid partnership with global retailers in Europe and the introduction of the Balaan Express overnight delivery service played pivotal roles in the robust sales growth.

The popular online platform also launched Balaan Care and Balaan Care Plus to verify the authenticity of its luxury goods, while providing warranty services to repair damaged items within a certain period of time after purchase.

Balaan also offered a price-comparison system for shoppers to purchase luxury goods for the lowest price on its platform, while recommending other items by analyzing a consumer's shopping behavior online.

"From the beginning of our business, we have drawn much attention from consumers with a special strategy that broke the stereotype of local luxury shopping," a Balaan official said.

Balaan designated high-income consumers between the ages of 25 and 54 as its main target group. As key buyers, they turned out to account more than 60 percent of total sales last year. The company said its customer-centered service policy also helped the repurchase rate of key consumers to improve from 45 percent to 60 percent.

"We will proactively respond to changes in domestic and international markets, while implementing customer-first policies," the official said.

jhkim@koreatimes.co.kr