Did you know that 48% of Korean luxury consumers are already aware of the LuX section within KakaoTalk Gift Shop that was only launched in 2023?
In the 2024 edition of our annual Luxury Consumer Research Report (LCR), we introduced KakaoTalk Gift Shop as a new topic due to the expanding luxury gifting market and the rising need for brands to provide a seamless customer journey in the e-commerce space. Since then we have looked into recent entries and activities of brands within KakaoTalk Gift Shop and organized our observations and analysis into a report.
Since then, we have looked into current industry practices within KakaoTalk Gift Shop and developed this report to offer insights on how brands can better leverage the platform to raise conversion and sales in 2024.
Report Objectives
- Provide a deep dive into KakaoTalk Gift Shop and how brands are using it as part of their e-commerce strategy.
- Showcase current industry practices of major features in KakaoTalk Gift Shop.
- Help readers understand what is important for brands to consider when entering or elevating their presence on KakaoTalk Gift Shop.
Report Structure & Topics Covered
- Kakao: introduction to the Kakao ecosystem and e-commerce services
- KakaoTalk Gift Shop: customer journey, unique features of KakaoTalk Gift Shop
- LuX: awareness of LuX among Korean luxury consumers, user personas, differences between the regular sections and the LuX section of Gift Shop, explanation of features unique to LuX
- Best Practices: case studies of how brands have leveraged KakaoTalk Gift Shop
Kakao
Kakao has two main e-commerce services: KakaoTalk Gift Shop and Kakao Shopping. Launched in 2010, KakaoTalk Gift Shop is a platform for users to buy and send gift-worthy products to other KakaoTalk users or to themselves. Launched in 2017, Kakao Shopping is an open marketplace where brands and users can easily register and sell products. KakaoTalk Gift Shop has grown to become one of the most popular e-commerce platforms due to the niche yet popular concept of mobile gifting, which has especially grown after COVID.
KakaoTalk Gift Shop
The main purpose of KakaoTalk Gift Shop is to conveniently send gifts to others and oneself during birthdays and special occasions. As KakaoTalk Gift Shop is part of KakaoTalk, it has a 99% market share in the mobile gifting market and has the highest monthly active users out of all e-commerce platforms.
LuX
LuX is a designated section within KakaoTalk Gift Shop that only offers products from luxury brands and provides a distinguished, premium gifting experience. Launched in June 2023, LuX has become a purchase channel known by 48% of Korean luxury consumers and is poised to keep growing as more brands enter. The benefit of LuX section that about 45% of consumers prefer is being able to see luxury products in one section. There are features such as premium delivery and click & collect that are exclusive to LuX products and not available for regular products.
Best Practices
This section provides examples of the different levels of branded and omnichannel customer journeys and case studies of how brands have been leveraging KakaoTalk Gift Shop to raise awareness and conversion for their products and collections. The first level is the usage of standard features provided in the platform to define the brand image. The second level is elevating the brand image with additional online and offline details throughout the user journey using components such as brand packaging. The third and last level is not just about conveying a brand image, but also providing a brand experience with an offline event as client treatment.
Download a preview version of the report here.
Contact us at insight@asiance.com to get your full KakaoTalk Gift Shop Report 2024 today!
