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Jeollanam-do’s public-private cooperative public delivery app ‘Mukkkaebi’, which has been successfully established since its launch, has recently seen a sudden drop in its growth due to a decline in performance. It is pointed out that in order to survive competition with private delivery apps by overcoming worsening performance and strengthening self-reliance, it is urgent to improve the company’s constitution, such as expanding content.
According to Jeonnam Province on the 23rd, since its launch on July 14, 2022, Mukkkaebi recorded a cumulative number of 9,851 affiliated stores, 704,409 orders, and sales of 17.355 billion won by the end of last month.
Sales of 10 billion won, originally set as a goal last year, were surpassed as early as August of the same year, and the franchise target (securing 7,000 locations) was also exceeded by 1,779 locations as of the end of the year.
The cumulative number of members is 99,963, which means that 5.5% of the population of Jeollanam-do are Mukkkaebi members. Given that the elderly population in the Jeonnam region is 26.4%, the proportion of users among young and middle-aged people is expected to be high.
In Gangjin-gun and Jindo-gun, the number of Mukkkaebi affiliates surpassed private delivery apps and succeeded in dominating the delivery platform. Considering that Korea’s leading private delivery apps, Baedal Minjok and Yogiyo, began their services in 2010 and 2012, respectively, the fact that latecomer Mukkkaebi broke the lead is seen as a significant achievement.
Mukkkaebi, which was launched to generate profits for small business owners and ease the economic burden on consumers, is operated by a private company, Mukkkaebi Co., Ltd., and provinces, cities, and counties are responsible for promotional marketing to encourage use. There is a low brokerage fee (1.5%) compared to private delivery apps (up to 15%), as well as no subscription or advertising fees. Payment in local currency is also possible.
In this way, Mukkkaebi, which was on a roll with a win-win situation for both small business owners and consumers, has recently seen a slowdown in its performance.
In fact, the number of Mukkkaebi orders and sales last month were 36,719 and KRW 910 million, respectively, down 8.7% and 14.9%, respectively, from the same month a year ago (40,222 orders, sales KRW 1.07 billion). . Even though the cumulative number of Mukkkaebi members increased by more than 60% from 62,118 to 99,963 during the same period, sales actually decreased.
The situation is the same for January and February this year. While the number of members in January and February increased by 143% and 91%, respectively, compared to the same period last year, the number of orders and sales in January only increased by 60% and 56%, respectively. In particular, the number of orders and sales decreased by 10% and 11%, respectively, in February.
Although the deterioration in performance is clear, measures to strengthen content are insufficient.
Even though Mukkkaebi launched a local product service that delivers agricultural and marine products in the province in August last year, only 11 items are currently for sale eight months later. Performance is also shabby. As of the end of last month, the cumulative number of orders was 225, and the cumulative sales amounted to only 4,246,700 won. Average monthly sales remain around 500,000 won.
The traditional market shopping service, which was initially scheduled to be expanded by 2023, has not yet begun operation. Jeonnam Province plans to begin service after completing discussions with at least one traditional market this year, but it is pointed out that there is a long way to go before expanding infrastructure, including various traditional markets and products.
In addition, domestic large private delivery apps (Baedal Minjok, Yogiyo, Coupang Eats) have recently been focusing on expanding their market share by taking advantage of ‘free delivery’, so it is predicted that improving Mukkkaebi’s performance will not be easy.
An official from Jeollanam-do said, “In the second half of this year, we will implement a 3-5% delivery app point payback event and expand packaging discounts when paying with local currency, and establish a store owner’s own marketing system to provide customized promotional multimedia messages (MMS) based on AI and big data. “We plan to focus on securing the self-reliance of Mukkkaebi by building a .”
Meanwhile, Jeonnam Province invested a budget of 1.26 billion won last year alone for promotion and publicity of Mukkkaebi, including discount coupons. This is 9.8% of last year’s Mukkkaebi sales of 12.833 billion won.
/Reporter Yang Si-won
Reporter Yang Si-won
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Tags: Jeonnam public delivery app Mukkkaebi growth slows years launch
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