Café24 GMV (Gross Merchandise Volume, Total Product Sales) grew +100% from 1.4

I was wondering if Cafe24 GMV Growth can rebound through YouTube shopping. If GMV Growth can rise, I think it’s enough additional Up-side.

Café24 GMV (Gross Merchandise Volume, Total Product Sales) grew +100% from 1.4 trillion won in 1Q19 to 2.8 trillion won in 1Q24. The indicators are seasonal, so they should be interpreted as the sum of the four quarters. Looking at the total growth of GMV in the fourth quarter, QoQ +5~6% in early 20 years grew, but the rate of increase continued to decrease, reaching +1.8% as of 1Q24.

According to research data from Korea Investment & Securities, there has been no significant change since Korea’s e-commerce penetration rate reached 25 percent in 20 years. In other words, it is a mature market. It was clear why Cafe24’s stock price and performance were bad.

By the way, Cafe24 has recently changed two things. 1) YouTube Shopping 2) Cost management.

Cafe24 22.12.05 launched ‘YouTube Shopping’ linked service and received equity investment from Google 23.12.05.

• Google’s third-party capital increase, KRW 26 billion investment (based on 7.24% stake, 24.06.07) In the early days, I used YouTube shopping such as Soon-ja’s mom, Joo-ju’s Kim Ja-ke, and Charm PD, but even larger partners such as Channel 15 (Aggies Coming, Na Young-seok PD)/Coupang are using YouTube shopping and plan to use it. If YouTube shopping becomes more active than now, I will be able to go up to the stagnant cafe 24 GMV. We are also tightening cost management at Cafe24. One-time costs have been greatly increased due to the reorganization of the organization in 23 years, but when looking at the operating cost/sales index, it has decreased compared to the year 21-22. If you look closely at the operating cost, you can see the reduction of salary items, which accounted for 3-40% of sales. The salary items accounted for 42% in 21 years and 43% in 22 years. However, based on 1Q24, the proportion of salary/sales is 34%. It will be reduced by close to 10%. The number of employees is also 1Q24 1,100, down 200 from 21. If GMV goes up, operating profit will be flexible because it is fully managed. The stock price also jumped due to expectations for additional Google equity investment. The performance is not meaningful, so it is a stock that needs to draw a narrative. To make it clear, it would be good to look at GMV movements, and if you want to buy it right away because you are in a hurry, you will have to respond thoroughly to the price trend. Basically, it seems that the business is clearer and the number of partners is increasing compared to when I posted the posts in 23.09 and 23.12 so it seems positive.