Operating loss of 4 billion yuan, South Korean e-commerce 11 Street disclosed its first quarter results

According to Korean media reports, Korean e-commerce 11Street continued to lose money in the first quarter of 2021. However, compared with the same period last year, sales increased slightly, maintaining a growth trend for three consecutive quarters.

According to the public data released by SK Telecom on its business performance, 11th Street's first-quarter sales increased by 2 billion won from the same period last year to 131.3 billion won, with sales growing steadily for three consecutive quarters.

The operating loss was 4 billion won, 800 million won less than the first quarter of last year, but a significant deterioration compared to the 1.4 billion won loss in the previous quarter.

11th Street said: "As we respond to the increasingly fierce e-commerce competition this year and strengthen marketing, we have made some efforts to consolidate 11th Street's growth foundation at the beginning of the year, which has led to an increase in expenses."

In January this year, 11th Street launched an early morning delivery service for SSG.com, and in March, it added an early morning delivery service for GS Fresh Mall . In April, through cooperation with the post office, it launched an "order today, arrive tomorrow" service for ordered goods that will be delivered before midnight, further strengthening its delivery services compared to last year.

In addition, shopping live broadcasts, which officially began in the second half of last year , have expanded significantly in both quantity and quality . In March, the number of viewers of "Live11" increased six times compared to the previous month, and the transaction volume during the broadcast period increased by more than 24%, and the satisfaction of both sellers and consumers has increased significantly.

11 Street hopes to achieve double-digit growth in sales this year to reach the break-even point (BEP) level of operating profit . To this end, 11 Street will continue to promote expanded cooperation with domestic and foreign sellers, strengthen business based on real-time communication, improve the quality of delivery services such as same-day delivery, continue to quickly settle sales payments, achieve win-win cooperation with sellers, and strengthen the virtuous cycle effect.

As the president of 11 Street said, "2021 will be a year for 11 Street to prepare results for customers." We will wait and see the future development of 11 Street.

11th Street

South Korea

Loss