The transaction volume reached 250 billion won! South Korean luxury e-commerce Must-It has been profitable for 10 consecutive years

While several newly emerging e-commerce platforms of the same type have invested large amounts of advertising money in their pursuit, the Korean luxury e-commerce platform Must-It has still achieved excellent results.

Based on the transaction volume in 2020, Must-It's share of the Korean luxury online trading market is at least twice that of the third place , and the gap is widening year by year.

Since its inception, Must-It has achieved an average annual growth rate of about 80% in annual transaction volume . In 2020, Must-It's transaction volume was 25 billion won, compared to 15 billion won in 2019. The transaction volume increased by 100 billion won in about a year, and it still increased by 66% even under the epidemic .

It is reported that Must-It's sales in 2020 increased by 78% compared with 2019, which is higher than the transaction volume growth rate . Net profit also increased by 77% compared with the previous year , which means that Must-It has entered a stable growth track.

Therefore, Must-It believes that under this growth trend, even if it reduces unnecessary advertising expenses, Must-It can still attract customers with its own competitiveness.

In fact, in Must-It's financial statements , advertising expenses account for less than 1% of total transaction volume , which is a big difference compared with the nearly 10% expense ratio usually spent by up-and-coming companies .

In July last year , in order to improve its service level and focus on technology development investment, marketing and talent recruitment, Must-It attracted 15 billion won in Series A financing. At that time, the valuation of the entire Must-It exceeded 100 billion won.

Among the reasons for Must-It's growth, short delivery time is the main reason for its growth. The online luxury goods market has a lot of imported goods through cross-border overseas direct purchases, so the delivery time is generally very long. However, Must-It's delivery ratio in South Korea is as high as 73%, and the average delivery time is 1.5 days, which is much shorter than other companies.

In addition, the Must-It mobile app currently has a rating of 4.8 out of 5, and its convenient shopping environment is also one of its advantages!

Cho Yong-min, CEO of Must-It, said, “In order to cater to customer needs and trends and to provide the best shopping experience, Must-It plans to continue investing in people and technology. Rather than focusing on immediate profits, our goal is to provide high-quality services that focus on the essence of the luxury business from a long-term perspective . ”

South Korea

Luxury

E-commerce