“CHIC” Records Monthly GMV of KRW 10 Billion, Showing Continued Growth with Reliable Transactions
“CHIC” Records Monthly GMV of KRW 10 Billion, Showing Continued Growth with Reliable Transactions
“CHIC” Records Monthly GMV of KRW 10 Billion, Showing Continued Growth with Reliable Transactions
- CHIC achieves a monthly GMV of KRW 10 billion and a cumulative GMV of KRW 58 billion as its first launch anniversary approaches, recording over 20% growth per month
- User-oriented services such as “CHIC FIFTY” and “CHIC Mile” maximize customer satisfaction
April 10, 2023
CHIC, a pre-owned luxury goods marketplace operated by PAP Corporation, a subsidiary of KREAM Corporation, has achieved a monthly gross merchandise value (GMV) of KRW 10 billion ahead of its first launch anniversary. The marketplace’s cumulative GMV so far has exceeded KRW 58 billion.
CHIC was launched in May of last year and is based on NAVER’s “CHICMENT” café, the largest online community for luxury goods in Korea that started in 2011 and remains active today. Unlike regular customer-to-customer (C2C) marketplaces that only ask for phone numbers and seller account verification, CHIC marketplace mandates five levels of verification. This includes the provision of phone numbers, accounts, credit cards, IDs, and fraud records via The Cheat (thecheat.co.kr) by the users before they can sell their items on the platform.
For customers who want a thorough authentication, CHIC offers a product authentication service with its authentication center called “CHIC Lab.” In the event that an item verified by CHIC Lab is identified as counterfeit, CHIC will provide the buyer with compensation worth 300% of the purchase price.
CHIC’s unique services, such as CHIC FIFTY and CHIC Mile, enhance user experience like no other, resulting in a 30% repurchase rate
CHIC’s monthly growth of over 20% results from product reliability established through its authentication center and the various services that the company offers to alleviate any difficulties that users may face when trading pre-owned luxury items.
In particular, the service most preferred by sellers is CHIC FIFTY. The service streamlines the process of selling pre-owned luxury goods from shipment to authentication, sales, and payout. CHIC FIFTY is even more appealing because sellers can receive 50% of the sale price upfront, even before the product is sold.
When a user wants to sell their item and registers for CHIC’s pickup service, the item will be shipped to the CHIC authentication center. Specialized agents will then examine the item and suggest a price based on existing sales data. If the seller decides to sell at the suggested price, they can receive 50% of the price as soon as the product goes on the market. Once the actual transaction is completed, the remaining balance will be paid out. A product that does not sell within a week will have its price reduced by 2% to facilitate faster sales. The sales commission fee is set at 10%, considered one of the most reasonable amounts in the market, and attracts many sellers to the service.
CHIC Mile is another popular service that ensures the safe delivery of expensive products. CHIC offers the CHIC Mile service for users uncomfortable using regular courier services to ship high-value luxury bags, clothing, and jewelry. They operate their pickup vehicles, with CHIC employees picking up the products and delivering them directly to the buyers. The service provides relief for users when trading luxury goods. CHIC Mile is a pilot service only available to users in the Seoul metropolitan area, but it will gradually expand its scope.
CHIC aims to achieve an annual GMV of KRW 200 billion in 2023, plans to expand community functions and enhance the membership system
This year, CHIC plans to increase the annual GMV to KRW 200 billion and upgrade the transaction-related features and community functions. This will enable users to share their passion for luxury goods and exchange information about various products.
To provide added value to its users, CHIC will offer several benefits through an improved membership system, such as point rewards on usage, free shipping, monthly delivery of online magazines, and point rewards for birthdays and holidays.
Furthermore, CHIC intends to separate authentication report components into small parts and launch a range of promotions related to trends and seasons.
A CHIC representative said, “We will continue to improve our services to provide users with a more enjoyable and satisfying experience compared to other marketplaces when trading and sharing information about luxury goods of interest.”
-END-