The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Chinese hackers attack 12 Korean academic institutions: KISA

  • 3

    Heavy snow hits Seoul, surrounding areas

  • 5

    From period to action: different genre series set for February

  • 7

    Campaign launched to respect multicultural families, foreign nationals

  • 9

    Cold wave warnings issued across Korea; Seoul witnesses coldest day

  • 11

    Netmarble debuts virtual girl group MAVE:

  • 13

    Korea's move to cut subsidies on imported EVs faces backlash

  • 15

    ANALYSISChina's reopening to help ease inventory woes

  • 17

    Major Korean banks' overseas branches sanctioned by foreign authorities

  • 19

    Yoon calls for adjusting regulatory, labor systems to global standards

  • 2

    Koreans stunned by spike in heating costs

  • 4

    Chinese hackers threaten to attack S. Korean cybersecurity watchdog

  • 6

    Homeless women struggle to find place to spend night

  • 8

    Why Korea imports so much kimchi from China

  • 10

    Center offers free STI testing to foreign residents of Korea

  • 12

    Cargo ship carrying 22 sinks off Jeju, 14 rescued but 9 unconscious

  • 14

    More than dozen chaebol scions indicted on alleged drug use

  • 16

    Lawmaker pushes for bill requiring women to join civil defense training

  • 18

    Seoul subway, bus fares to rise by 300 or 400 won

  • 20

    Samsung chief gives gifts to new moms, employees from multicultural families

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
Fri, January 27, 2023 | 11:27
Companies
Luxury shopping platforms encounter financial difficulties
Posted : 2022-10-19 17:54
Updated : 2022-10-19 17:54
Kim Jae-heun
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Balaan posted an apology on its official website following the leak of customers' personal data on March 17. Courtesy of Balaan
Balaan posted an apology on its official website following the leak of customers' personal data on March 17. Courtesy of Balaan

By Kim Jae-heun

Balaan, Trenbe, Must It and other online luxury shopping malls had flourished over the past two years during the raging COVID-19 pandemic on the back of so-called "revenge spending" by consumers who spent money on luxury goods since they were unable to travel abroad.

However, as soon as the country showed significant signs of recovery from the pandemic and the government lifted travel bans, local luxury shopping firms saw their sales plunge.

The platforms spent a tremendous amount of money on marketing in 2020 and 2021 to stay ahead of their rivals amid intensifying competition. They hired top actors like Joo Ji-hoon, Kim Hye-soo and Kim Hee-ae for their commercials to raise brand awareness and attract new customers. This led spending at all three luxury shopping firms to surpass 300 billion won ($214.5 million) last year. In particular, Balaan's gross merchandise volume in 2021 surged 51 percent year-on-year to 315 billion won.

However, controversies like selling fake luxury goods, leaking customers' personal data and requesting excessive refund fees have turned many customers off. In addition, the U.S. Federal Reserve raising its target interest rate by 75 basis points three times in a row affected local venture capital and private equity funds to withdraw their plans to invest in local luxury platforms.

Balaan is said to have been hit the hardest by such changes, according to industry analysts. The company has been trying to attract "Series C" funding since January. Balaan planned to raise about 100 billion won through investments.

However, after it deceived customers about the prices of its products, while some of the items sold were reportedly revealed to have been imitations, Balaan saw 120,000 users close their accounts.

Its corporate value also decreased from around 800 billion won to 500 billion won.

"We planned to go public after successfully attracting Series C investments, but it did not work out well. We are also currently facing continuous operating losses and we have decided to decrease marketing expenses as well," a Balaan official said.

"A number of unfavorable factors have tarnished the brand images of luxury shopping firms and many users have left their platforms," a source at a local luxury firm said. "The number of users is connected directly to their business performance and this makes investors hesitant to spend money on luxury shopping platforms here."


Emailjhkim@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1Koreans stunned by spike in heating costsKoreans stunned by spike in heating costs
2Homeless women struggle to find place to spend night Homeless women struggle to find place to spend night
3Inflation weighs on householdsInflation weighs on households
4'I was a stock investment addict': psychiatrist seeks to help addicted people through his book 'I was a stock investment addict': psychiatrist seeks to help addicted people through his book
5[INTERVIEW] Partnerships with Korean companies help Delta Air Lines' post-pandemic recovery INTERVIEWPartnerships with Korean companies help Delta Air Lines' post-pandemic recovery
6Netflix series 'The Glory' draws focus to real school bullying Netflix series 'The Glory' draws focus to real school bullying
7Korea's GDP shrinks 0.4% in Q4, 1st contraction in 10 quarters Korea's GDP shrinks 0.4% in Q4, 1st contraction in 10 quarters
8Gov't to double subsidies for vulnerable households as energy bills soar Gov't to double subsidies for vulnerable households as energy bills soar
9S. Korea to increase joint air defense exercises following N. Korean drone incursionsS. Korea to increase joint air defense exercises following N. Korean drone incursions
10[VIDEO] Do Koreans know K-pop idols well? VIDEODo Koreans know K-pop idols well?
Top 5 Entertainment News
1From period to action: different genre series set for FebruaryFrom period to action: different genre series set for February
2Miguel Chevalier's psychedelic digital universe takes audience participation to next level Miguel Chevalier's psychedelic digital universe takes audience participation to next level
3Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film
4Yun Hyong-keun's hanji works come under spotlight in Paris for first timeYun Hyong-keun's hanji works come under spotlight in Paris for first time
5Kim Hyun-joo says humanity is at heart of action film 'Jung_E'Kim Hyun-joo says humanity is at heart of action film 'Jung_E'
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

wooribank
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group