Cafe24 has launched a service that diagnoses brands' growth challenges and also takes charge of shopping mall operations. Cafe24 said on Monday it is launching the 'Cafe24 Accountable Enterprise Service', centred on setting growth strategies for each brand and providing dedicated operational support.

Unlike typical outsourcing services that handle only requested tasks, Cafe24 directly supports issues that brands need to solve first, the company said. It comprehensively analyses the customer, market and competitive environment, product and purchase data, and shopping mall operating status. It then determines a brand's strengths and direction and provides them.

For brands where purchase conversion rates are the issue, it improves content and the buying process, including product assortment and display and product detail pages. If a brand needs to acquire new customers, it strengthens advertising and collaborations with creators. If expanding repeat purchases is the goal, it runs customer relationship management (CRM) and promotions based on customer data.

Cafe24 sets an operating direction using shopping mall data and applies it to the mall. It then built an improvement system that analyses customer responses and transaction performance and reflects them in the next round of operations. Dedicated teams by brand handle content production, purchase process improvements, advertising and promotions, CRM, and discovering and collaborating with creators. It uses AI technology to increase execution speed and work efficiency in areas such as content production.

The company said key indicators improved in a pilot with real brands ahead of the official launch. For a childcare goods brand, unique visitors from notification messages increased 15.1 percent and the share of revenue from repeat purchases rose 18.0 percent. For a food brand, it overhauled the purchase structure and ad operations together, lifting return on ad spend (ROAS) to 362 percent from 164 percent. That brand's new member purchase conversion rate increased 59.6 percent and the share of revenue from repeat purchases rose 50.7 percent.

Responsibility for performance is shared with the brand. After consultations and a preliminary diagnosis, it sets goals and the scope of operations and collects performance fees only when results exceed pre-agreed benchmarks. Its main targets are companies and brands that have good products and growth potential but find it difficult to run content, marketing and customer management under a single direction. While brands focus on decision-making such as product development and vision, Cafe24 takes charge of overall operations under an agreed strategy.

Cafe24 plans to further enhance its data analysis and operational capabilities. It will also expand linkage with its commerce infrastructure, including creators' group buying, advertising, inventory and delivery. It also plans to broaden support to brands across various industries and sizes in South Korea, as well as brands pursuing entry into global markets.

Lee Jae-seok (이재석), CEO of Cafe24, said, "For a brand to grow, it is important to find what needs to change now and execute it quickly, as much as making good products." He said, "Based on data and commerce expertise, Cafe24 will first identify what a brand needs and operate it directly, becoming a partner that leads to tangible performance creation."