The T-commerce (data home shopping) industry is witnessing fierce competition between SK Stoa and Shinsegae Live Shopping for the top spot in sales. SK Stoa reclaimed the top position in sales through performance improvements in the second quarter of this year; however, it is slightly lagging behind in terms of revenue. Industry observers suggest that the performance during the second half of the fall/winter (FW) season, which is considered a peak season for home shopping, will be a crucial battleground.
T-commerce is a word that combines television and commerce, referring to data-driven electronic commerce via TV. It allows customers to purchase products using a dedicated remote control without using a phone while watching TV. Unlike TV home shopping, T-commerce can only broadcast recorded shows, not live broadcasts.
According to the Financial Supervisory Service's electronic disclosure system on the 22nd, SK Stoa recorded sales of 80.5 billion won and a net profit of 3.8 billion won in the second quarter of this year. Compared to the same period last year, sales increased by 7.6%, and net profit rose by 80.6%.
SK Stoa, a subsidiary of SK Telecom, launched as 'B Shopping' under SK Broadband in 2015 before spinning off in 2017. In 2019, during the merger of SK Broadband and T Broad, SK Telecom acquired all equities, integrating SK Stoa as a subsidiary. SK Stoa maintained its position as the industry leader in sales from its inception until the third quarter of 2023, but it fell to second place starting in the fourth quarter of that year after being overtaken by Shinsegae Live Shopping.
In the second quarter of this year, Shinsegae Live Shopping recorded sales of 80.2 billion won and an operating profit of 6 billion won. Compared to the same period last year, sales decreased by 1.6%, while operating profit increased by 1.7%. Shinsegae Live Shopping maintained the top sales position for six consecutive quarters from the fourth quarter of 2023 to the first quarter of this year. However, it again ceded the top spot to SK Stoa in the second quarter.
The background of Shinsegae Live Shopping overtaking SK Stoa in the past is attributed to the effect of being incorporated into Shinsegae Inc. Shinsegae Live Shopping, formerly an Emart affiliate, improved its sales and revenue after being consolidated into Shinsegae Inc. effective from the third quarter of 2022, creating synergies with Shinsegae Department Store.
During this period, Shinsegae Live Shopping recruited executives from the fashion department of Shinsegae Department Store and established a brand strategy task force directly under the CEO, enhancing its own brand development. It also formed an organization dedicated to department store products and uniquely positioned Shinsegae Department Store on its platform to enhance product competitiveness.
After losing the lead, SK Stoa revamped its customer membership program at the end of last year, establishing a VVIP tier and increasing benefits for existing customers to secure loyal clientele. In the first half of this year, in response to the rising customer demand, it opened a dedicated beauty and health products section on its mobile app and launched exclusive products to strengthen competitiveness. Following the trend of improving delivery services in the industry, it also began offering 'fast delivery' services, such as same-day and next-day delivery. Thanks to these efforts, SK Stoa succeeded in reversing its sales revenue in the second quarter.
However, in terms of revenue, Shinsegae Live Shopping is said to have a slight edge. The net profit margin of Shinsegae Live Shopping, which was at 3.4% last year, rose to 4.8% in the first half of this year, an increase of 1.4 percentage points (P). During the same period, SK Stoa's net profit margin increased from 1.4% to 4.7%, marking a rise of 3.3 P.
The T-commerce industry is preparing for the upcoming fall/winter (FW) season. This period is considered a peak season for the industry as the sales of clothing items such as coats and padding jumpers, which have a higher average transaction value and margins, increase.
An official from SK Stoa noted, 'Based on our experience from last year's unusually long summer, we are adjusting our inventory by increasing winter season items instead of fall items this year. We are also focusing on preparing health products and fruits, considering the long Chuseok holiday.'
An official from Shinsegae Live Shopping said, 'We are preparing to launch a variety of products, including private brand (PB) items in the clothing sector for the second half of the year. We are also striving to secure special-priced products through collaboration with partners in the beauty and health product sectors.'
Meanwhile, there are currently a total of 10 T-commerce operators in Korea. SK Stoa, KT Alpha Shopping, Shinsegae Live Shopping, Shopping N T, and W Shopping operate exclusively in T-commerce. CJ OnStyle, GS My Shop, Lotte Home Shopping, Hyundai Home Shopping, and NS Home Shopping run both TV home shopping and T-commerce.