Expanding the sales of overseas specialty products for’Good Travel’
Started’Modu Tour’ overseas direct purchase agency service
‘Yellow Balloon’ and’Tide Square’ are also added.
‘Klook’ sells Korean specialties in Hong Kong and Taiwan
“Even if the profit is small, the management effect of customers and partners is great”
Travel agencies that were hit directly by the Corona 19 crisis are expanding their e-commerce business through overseas specialty sales. ‘True Good Travel’, an online direct sales travel agency that started online sales of specialty products for the first time in the travel industry in November last year, posted sales of 560 million won through four sales. The picture is an image of’Good Market’, our own mall of good travel.
‘True Good Travel’, an online direct sales travel agency, is planning to add various product sales business in the corporate registration copy and business registration to the business purpose of this month. In addition to the existing package tour products and airline tickets, it is to diversify sales items such as food, beverages, health supplements, cosmetics, life, kitchen, medical supplies, and travel souvenirs.
The travel agency turned to overseas specialty sales when sales of its flagship travel products and airline tickets plummeted due to the new coronavirus infection (Corona 19) last year. 20-year-old Italian balsamic vinegar, Spanish olive and argan oil, and Australian-made serum products were sold in flames as if their wings were raised. 3,000 cans of the Spanish Olive Gallery’s oil products, which were offered at the same price as in Italy, were sold out in just three hours.
Travel agencies, which have been closed due to the corona crisis, are entering the’e-commerce (e-commerce)’ market one after another. It is evaluated that the strategy of’vertical commerce’, which selects and sells only popular local products, is emerging as a new business model in the travel market, coupled with the repressed desire for overseas travel.
○From sales of specialty products to purchase and delivery agency
The first in the industry to sell foreign specialties in November of last year, Good Travel sold 8,000 European specialties for three months until January of this year, recording sales of 560 million won. Products sold in the’Good Market’, a company’s mall for 330,000 existing members without any special promotion, were so hot that the amount of goods secured expired in 2-3 days. This is because the marketing strategy that was offered at the same price as the local price was hit. Italian Leonardo Condimento Balsamic 20 Year Old Vinegar sold in a good market is sold in Korea for 150,000 to 160,000 won, which is nearly 50% expensive.
As the sales of specialty products gained more than expected popularity, a team dedicated to the regular operation of an online mall dedicated to overseas specialties was set up for a good trip. At the shareholders’ meeting held on the 19th, a plan to add a sales business to the business purpose has been raised on the agenda. Han Ji-hoon, head of the great travel marketing division, said, “We plan to convert a regular mall from a very good market that was operated as a single event and expand the variety of overseas specialties.”
Spanish Olive Gallery Astra Virgin Olive Oil Deva & Acard. This product, which was introduced to members of the company’s mall’Good Market’ last January, sold out 3,000 cans in just three hours. / Provide a good trip
In addition to selling special products, Modetour has started an agency service that buys and delivers products sold at overseas shopping malls instead. Modetour, which sold Argan Oil in Spain and Bean Dang Tax Serum from Montage Pharmacy in Paris, France, in the form of joint purchase with a sales agent in February, achieved sales of nearly 200 million won. On the 10th, it officially opened’Send Mi’, an overseas direct purchase agency that purchases and delivers products sold at online malls in the UK, France, Germany, and the US together with the London subsidiary in the UK.
Domestic and foreign online travel agencies (OTA) are also joining the e-commerce competition. Tide Square, which provides Hyundai Card’s Previa travel service, is considering operating its own mall that supplies overseas specialty products, taking advantage of its experience in operating a credit card point mall until last year. It is reported that the yellow balloon, which will introduce the next-generation online platform in the first half of this year, has also added an e-commerce function to the platform.
Global OTA KKday sold Taiwanese mango jelly and crackers by its headquarters in Taiwan and its Korean branch in September last year. Klook also started selling local specialties jointly by its headquarters in Hong Kong, Taiwan, and Korea. The Korean branch purchases laver, mask packs, and snack sets, and the head office and overseas branches sell them locally.
○ Partner management, securing customers and profits’one stone and three trillion’
The reason why the travel industry is expanding e-commerce through overseas specialty sales is that it has a great effect on managing existing networks such as customers and land companies (local travel agencies). As the travel market stopped due to Corona, it is expected to reduce the churn of existing customers and attract new customers by increasing the reduced skinship. One of the factors is that the entry barrier is low because travel agencies that have partners such as local branches and land companies do not have to spend a lot of time on product purchase and delivery.
Modetour has made it possible to use travel agency mileage as cash when purchasing overseas specialty products to reinforce the online membership service of more than 3 million. Klook provides coupons for members who purchase specialty products to receive discount benefits when purchasing travel products.
An official from Modetour’s Product Planning Department said, “We are expecting the effect of attracting new customers by managing existing customers for overseas specialty product sales, and for purchasing and delivering overseas shopping malls.”
It’s not big, but you can expect profits as well. Compared to package tour products and airline tickets, sales and profits are extremely small, but in the situation of the empty corona barley pass, it is a “drinking rain”. The travel industry is expecting that if the unit price is lowered by purchasing products in large quantities, the’Altoran’ business will be able to maintain price competitiveness and guarantee a higher margin than it is now.
Lee Sang-pil said, “Overseas specialty product sales are meant to help reorganize the organization and services of local partners such as Land, which has been in business difficulties as tourists are cut off for more than a year than profits. It’s bigger,” he explained.
Reporter Lee Sun-woo [email protected]