CJ ENM's commerce division, CJ OnStyle, has reported simultaneous growth in revenue and profitability for the second quarter of this year, fueled by the rise of mobile live commerce (MLC).
According to CJ ENM, CJ OnStyle's operating profit for the second quarter reached 26 billion won, a 21.2% increase compared to the same period last year. Revenue rose by 4.4% to 402.8 billion won.
The improvement in performance was led by MLC, which saw a transaction volume of 184.8 billion won in the second quarter, marking a staggering 161.3% increase year-on-year. During the same period, the number of new installations of the CJ OnStyle app and the monthly active users (MAU) also grew by 25.6% and 10.5%, respectively.
Previously, CJ OnStyle expanded its customer base by distributing short-form content edited from live broadcasts on external channels such as YouTube, Instagram, and TikTok. Additionally, the integration of popular intellectual properties (IP) from the KBO, as well as films like 'The Devil Wears Prada 2', 'Wally Run', and 'Minions', into commerce content proved effective.
The company explained that a virtuous cycle has been established, where customers who engage with content on external platforms transition to the CJ OnStyle app to make purchases, leading to improvements in both customer base and conversion rates.
In terms of product categories, premium travel and children's products drove revenue growth. The expansion of health supplements and premium beauty products also contributed to the increase in operating profit by enhancing profitability-focused product management.
A CJ ENM representative stated, "We will continue to improve profitability in the second half of the year by expanding our platform customer base and diversifying our business with content and music IP, as well as expanding global distribution."
* This article has been translated by AI.
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