The 'GetJu,' which had raised 11 billion won in funding in the liquor smart order market, will end its service on the 31st. Following the closure of the second-largest player, 'Dali,' in November last year, another liquor smart order startup is leaving the market. Experts analyze that the liquor smart order market is being reorganized around large corporations.
According to the liquor industry on the 24th, GetJu decided to completely suspend its service by the end of this month. GetJu is a latecomer that started its service in 2023. The operating company, Bonacamp, raised 11 billion won in funding shortly after its establishment from companies like Shinhan Capital and IBK Capital. This was the largest single investment in the domestic liquor smart order space. Notably, the Hong Kong FreeD Group participated as a strategic investor, raising the possibility of overseas expansion.
As large-scale discounts and promotions followed the initial investment in the service, early responses were enthusiastic. In July 2024, just one year after its launch, monthly orders surpassed 10,000. As of November last year, the monthly transaction count exceeded 20,000, maintaining a growth trend.
However, as the high-end liquor market, centered on wine and whiskey, faltered and competition in the liquor smart order market intensified, user loyalty began to decline. According to the startup information site Innovation's Forest, the repurchase rate over a 12-month period was around 22%. This means that only about one in four users used GetJu at least once a year.
A representative from the Korea Alcohol Comprehensive Research Institute noted, "GetJu secured users in a short period through aggressive marketing and investment, but due to the nature of the liquor smart order service, consumers tend to compare prices across several apps to choose the cheapest product, making it challenging to secure loyalty."
The liquor smart order service began in 2020 with the amendment of the Notification on the Delegation of Authority concerning liquor mail-order sales. The government relaxed related regulations as the liquor industry contracted due to the COVID-19 pandemic. This service allows consumers to order alcohol online and pick it up at offline stores. Liquor stores can sell various products online that were difficult to display due to space limitations. Consumers can also compare prices clearly by store.
Starting from 2020, liquor smart order startups such as DailyShot, Kihya, 1KilometerWine, JjanShop, and GetJu entered the market one after another. The industry leader DailyShot secured a cumulative investment of 12.5 billion won and reached the Series B investment stage by August this year, earning recognition for its growth potential. In contrast, GetJu and the second-place player Dali have both closed.
A representative from the Korea Sommelier Association stated, "The liquor smart order has undeniably made a significant impact on the liquor market by increasing price transparency in the previously opaque wine and whiskey markets and expanding consumer choice rights," while adding, "However, it has become difficult to secure profitability due to fierce price competition, making independent survival challenging."
Currently, the liquor smart order market is led by convenience store franchises and large liquor importers. Apps from convenience store franchises, such as CU's 'CU BAR' and GS25's 'Our Neighborhood GS,' as well as '1KM Wine' operated by the publicly traded NARA CELLAR, are maintaining a steady user base. Utilizing over 10,000 offline stores and logistics infrastructure across the country, these companies have secured competitiveness in the liquor smart order industry. Recently, they have also started to request customized liquor products from importers based on scale.
Kim So-hyung, a brand positioning expert and consultant at Davis & Company, remarked, "Although liquor smart order startups secured consumers with initial funding, their business structure relies on securing offline bases, making it challenging to compete with well-established large companies." He added, "As long as the liquor tax law does not change, the liquor smart order market will inevitably be reorganized around convenience stores or large retailers due to the inherent limitation that consumers must visit a specific store to receive their orders."
Kim Joo-han, a bartender at Blue Brick Bar, said, "The domestic liquor market size has surpassed 10 trillion won as of 2023, and the number of domestic enterprises holding liquor manufacturing licenses has reached over 3,200," stating, "In the future, the liquor smart order market will survive not through simple price competition, but through platforms offering premium liquor curation or distinctive liquor information. "