Gmarket E-business
(GMKT) is a retail e-commerce marketplace in Korea offering buyers a selection of products and sellers a flexible sales solution. The Company’s commerce marketplace facilitates the sale of products in small or large quantities to a large number of potential buyers. The G-market’s commerce marketplace facilitates the sale of products in small or large quantities to a large number of potential buyers just like E-bay.
According to MSN money, G-market derives its revenues primarily from transaction fees on the sale of products on its Website, as well as from advertising fees and others. The Company’s e-commerce marketplace is located at www.gmarket.co.kr.
Products listed for sale on the Company’s Website are: apparel, beauty products, computers, electronics, furniture and jewelry and are coupled with product information, including pictures, product descriptions and customer reviews and commentary which runs by G-market’s sales manager software program(GSM).
G-market has a unique business model. G-market is not not just a typical auction site while E-bay focuses on single seller or sore seller to drive the commission fee, G-market’s niche market is small to medium business. Instead of focusing on large businesses or occasional sellers, G-market focuses on the needs of small to medium sized businesses. In Korea, this group of sellers has been the most active in adopting the Internet for their business and they have been the driving force of e-commerce market growth. As G-market’s business model focuses on small to medium sized business, the company is well positioned to expand its seller base to large businesses.
There are some fundamental keys on G-market that wants to be shown to share holders.
- Revenue grew to $51.6 million in Q4 2006, representing a 67% increase in revenue from $30.9 million in Q4 2005.
- Gross Merchandise Volume, the key metric used to evaluate total value of all items sold, increased by 53% to $737.4 million in Q4 2006 from $480.8 million in Q4 2005.
- Operating income grew to $6.6 million in Q4 2006, representing a 120% increase from $3 million for the same period in 2005.
G-market carries zero debt on their balance sheet, and Retained earnings have increased nearly 1400% from Q1 2006 to Q4 2006. G-market also tripled its short term & cash holdings during the same period as well. Therefore, G-market will make money for share holders.
Many analyzers think Gmarket will take over other competitor company like E-bay because G-market’s EPS are projected to grow at 34% over the next 5 years, then, take into account that eBay has lost considerable market share to G-market. 68% of the Korean populations are internet users, the highest percentage in the world. Moreover, G-market will expand its business operations in China and Japan which will dominate all over the Asian e-business market. So, it is a good time to put money in this company.
Article source: http://www.investortrip.com/gmarket-the-korean-version-of-ebay/
Filed under: Internet Marketing, Marketing Trends