Enjoy Half Price
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Enjoy Half Price
  • GLOBE
  • 승인 2011.03.03 13:02
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What do you do at the beginning of a day? Most people do washing actions like brushing their teeth and washing their faces. However, in the future you will turn on your computer and check the social commerce. Social commerce makes inroads into our life quickly and effectively.

 

What is social commerce?

What is the reaction to the company? Were there anycomplaints?

Most social commerce that started up in Korea models the first social commerce site, Groupon. Social commerce performs a role as a middleman between sellers and consumers. If a certain number of people sign up for the offered items, then the deal becomes available to all and the price becomes cheap. This system has received fervent response. Then, how are these deep discounts available? To answer this question, I interviewed Ondal Prince, the president of ‘Ondal Prince’ social commerce.

 

 


In Jeonju, social commerce has created a boom. How can 50 percent discounts be possible?
Every store advertises their business. The advertising cost for television, newspaper, buses, banners, and so on are all different. For instance, the cost of hanging one banner was 50,000 won, and they hung ten. The store spent 500,000 won and ten people came. They used 50,000 won for each person coming. However, if the store uses 500,000 won for discounts per head, these shocking prices are possible. It is better than an
inefficient banner.


You were a power blogger of the Daum portal site. How did you enter the social commerce competition?
When I managed the blog, a lot of social commerce was offered to me to take care of in the Honam area. If I accepted the proposal, the profit of social commerce in the Jeonju area would have gone to the head office in Seoul. I didn’t want that. Then I made up my mind to start social commerce firsthand.


What is the advantage of social commerce?
First, consumers enjoy the product at a cheaper price. They can go to some stores which they can’t use in other times because of expensive prices. Then, even if the goods are not high-quality, their complaints are less. Second, social commerce has confidence in advertising effect. The price of advertisement is low. A certain number of people that sign up come to the store. No matter how good the taste is, if there are no guests in the restaurant, psychologically people do not want to go there.


What is the reaction to the company? Were there anycomplaints?
There have been no complaints. Rather, customers contact us again and want a deal for another product. In spite of loss, they call again because social commerce satisfies them.

 

R

At first, social commerce introduced food and cafés. Then, recently, other products were introduced. What is the possibility for social commerce? Which products can be dealt with in social commerce?

Groupon exceeded Google and Microsoft’s stock. All Americans use Groupon. Recently, beauty parlors, ormances, and fitness centers are social commercialized. I think each region’s specialty or distinct characteristic, such as Gochang rubus coreanus (a kind of raspberry) or Jinan red ginseng spa can make deals.

Groupon exceeded Google and Microsoft’s stock. All Americans use Groupon. Recently, beauty parlors, ormances,and fitness centers are social commercialized. I think each region’s specialty or distinct characteristic, such as Gochang rubus coreanus (a kind of raspberry) or Jinan red ginseng spa can make deals.

 


Can social commerce succeed in a thinly populated region, since it requires from several dozen to hundreds of people to sign up?

When I make a contract, I form not a “one-shot” but a continuous contract. Stores believe me and I believe them. For example, I establish an alliance with 80 shops. Since I make one deal a day, it takes three months. In the next three months We can deal other products for them. Therefore, there is no necessity for finding new stores and the service quality is high. When you start a business, you should show only ten percent and keep the others behind as a secret. I have a longrange plan, and social commerce is not the end, but the start. I have no apprehension of failure. I am sure for success.



Recently, according to the market research site Trend Monitor, three in ten people use social commerce. In Jeonju, four representative social commerce sites are in active: Wecoupprice (www.wecoupprice.com), Hosittamttam (hottam.co.kr), and Ondal Prince (www.ondalprince.com). Some other sites are in preparation. Check out these sites and enjoy the rights of a consumer. You can make the price!

Kuk Chan-song reporter

 


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