Naver announced that the ‘Neighborhood Market Grocery’ service transaction amount has increased approximately 74 times since the launch of the service, and the number of orders has increased 61 times (growth in the second quarter of 2022 compared to the second quarter of 2019), growing along with small and medium-sized enterprises (SMEs) in traditional markets.
Naver’s ‘Neighborhood Market Shopping’ is a representative platform that has driven the expansion of online sales channels and business for traditional market merchants. Users can order fresh ingredients and food from local traditional markets online and have them delivered within 2 hours or the same day.
Naver provides the platform for free to market merchants, and operates and delivers in cooperation with startups and local delivery companies. Starting in January 2019, the 100th market opened in June 2021, and currently, 170 traditional markets are using the ‘neighborhood market shopping’ service.
The competitiveness of ‘neighborhood market shopping’ is also increasing due to the convenience of the service, which allows users to easily browse local markets on their mobile devices and pay directly with Naver Pay, and the synergy of various support for traditional market merchants. Accordingly, Naver has expanded the connection between market merchants and users through exposure to various advertisements, and is lowering the logistics burden by providing eco-friendly materials.
Accordingly, the proportion of repeat buyers in ‘neighborhood market shopping’ is over 60%, and the number of regular customers is steadily increasing. Participating markets, which were concentrated in the Seoul and Gyeonggi regions at the beginning of the service, have now expanded nationwide, reaching 40% of stores in traditional markets outside the metropolitan area.
In particular, Amsa General Market, the first ‘neighborhood market shopping’ market, recorded a cumulative transaction volume of KRW 2.3 billion and a cumulative number of orders exceeding 200,000. Amsa General Market’s ‘Sunsoohanchan’ has been developing online-only products such as stews, soups, and fruit lunch boxes that were not previously sold offline, and is actively promoting online sales by conducting various promotions. There are also continuous cases of successful digital transformation. there is. Japchae, the representative product of ‘Pure Hanchan’, is receiving a positive response from users, with 1,300 cumulative reviews and a rating of 4.7.
Meanwhile, Lee Yoon-sook, CEO of Forest CIC, who oversees Naver Shopping service, attended the 6th Emergency Economic and Livelihood Meeting chaired by the President at Amsa Market on the 25th and announced support measures for traditional markets that have recently suffered flood damage. She decided to provide discounts on goods during the Chuseok period for 13 heavily damaged markets, and also support shopping live production and promotions on the day of the live for 4 of these markets. This is to help normalize market operations as the use of traditional markets increases ahead of the Chuseok holiday.
Lee Yoon-sook, CEO of Forest CIC, said in a discussion she participated in that day, “Naver has continued to make efforts to grow together with SMEs and traditional markets under the name of ‘Project Flower.’” “Nurturing local commercial districts and creating an online business ecosystem are things that Naver has always been concerned about.” “As such, we will work harder to ensure that Naver’s IT technology and various services can be actively utilized in the digital transformation of SMEs.”
Source: Pangyo Techno Valley Official Newsroom
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