Direct Store on Naver
Last month, we talked about Naver Shopping Live along with the booming trend of live commerce platforms. On Naver, a variety of services and functions are provided especially for e-commerce areas. In fact, many brands are devising a number of ways to increase traffic within the brand’s official website, which can also be solved within the platform called Naver. It is to launch a ‘Naver Brand Store’ so that consumers can visit the brand’s official website more easily.
Naver Brand Store is an ‘online direct store’ run directly by the brand on Naver. Brands can introduce themselves and sell products inside the Naver Brand Store on their own. As for now, Naver Brand Store mostly allows big brands such as Apple, Adidas, New Balance, Dyson, Gucci, Disney, Etude, Too Faced, and so on to sell directly to their customers. The service was started from 2020 as a beta service, and it was officially launched in 2021. Naver Brand Store mainly focuses on luxury goods, home appliances and cosmetics, as credibility and adaptable UI are the key strengths. As of the fourth quarter of 2021, the number of Naver Brand Store was 618, with an increase rate of up to 50% compared to 400 in June 2021. In addition, luxury brands such as Louis Vuitton and Dior also entered the Naver Brand Store in 2021. More luxury brands such as Givenchy Beauty, Moncler, Montblanc, etc. are adopting Naver Brand Store in various fields such as luxury beauty, fashion and jewelry. Depending on the brand’s strategy, purchases may be made directly from the Naver Brand Store or from the official website if a brand’s ultimate goal is to obtain traffic to the official website.
Then what would be the pros for brands when launching the Naver Brand Store? First off, they can earn autonomy. Naver Brand Store is characterized by providing advanced integration solutions while ensuring operational autonomy like Naver Smart Store. Brands can operate an official brand store within Naver and manage customers. Second, UI & UX can be customized. UIUX customization is effective when revealing a brand’s own features and identity. Even though there is a guideline of Naver about the Naver Brand Store’s UI and UX, brands can express their own tone and manner within Naver platform in discussion with Naver. Third, a low fee is one of the benefits that brands can earn. Brands can reduce the fees that they need to pay by using other distribution platforms. In addition, Merchant Solution is supported for the brands. It is a support tool that provides necessary technologies and data throughout the business stage, such as marketing, products, and customer management. The beta services in the second half of 2021 were provided and will be launched as the official service in 2022. Also, various marketing tools can be used. For example, a lot of brands are actually utilizing Naver Shopping Live, New Product Week, Naver Gift Shop, and so on. Last but not least, brands are able to gain the customer data from the Naver Brand Store. Brands can use sales data analysis and CRM solutions through the service called Brand Analytics provided to brand stores.
Then how about the benefits from a customer’s view? First of all, a subscription function is offered. Naver Brand Store allows Naver users to subscribe immediately if they ‘like’ the brand. Once the ‘like’ button is clicked, then the store is added as one of the customer’s favorite brands. And the specific/exclusive information of the brand can be offered. This service further strengthens the connection between brands and users, inducing the users to visit Naver Shopping much more frequently. Furthermore, quick benefit notification can be initiated. As a Naver Brand Store is directly managed by the official brand, not a reseller or any other platforms, customers can check the brand news related to shopping benefits the most quickly. This is also an added value of adding some brands that the customers are interested in.
If a Naver Brand Store is launched, both brands and customers are able to earn a few advantages. Recently, as more and more customers are eager to check the ‘authenticity’ and ‘reliability’ when it comes to premium or luxury products, if “officiality” is confirmed by launching the Naver Brand Store, customers will be provided with reliability as well as convenience to search and pay at once within Naver.
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