Gmarket's strategic investment is translating into improved performance. Gmarket said on Wednesday its gross merchandise value (GMV) in the first half of this year returned to positive year-on-year growth for the first time in four years. GMV on the Gmarket site, where it concentrated investment, rose 14 percent from a year earlier, leading overall growth. GMV is seen as a key indicator of influence in the e-commerce market and platform competitiveness.

Gmarket last year set a goal of doubling GMV within five years and announced a large-scale investment plan for customers and sellers. GMV growth recovered in the first half of this year, the first year it implemented the investment. Customer purchasing power, seller competitiveness and the global business also grew, making the effects of investment clearly visible. The company said the growth is analysed as reflecting results from strategic investment targeting customers and sellers.

Customer-related indicators also improved. Average monthly spending per customer rose 12 percent from a year earlier. It is meaningful in that spending per customer increased rather than simply visitor numbers. GMV from direct visits that did not go through price comparison sites also rose 5 percent, and the purchase conversion rate climbed 14 percent. It is interpreted as a result of strengthened platform competitiveness centred on loyal customers.

The seller ecosystem is also being restored quickly. As of the first day of the month, Gmarket had 660,000 sellers, up 5 percent from a year earlier. The number of profit-focused sellers with monthly sales of 50 million won or more rose 6 percent. The growth is analysed as reflecting seller investment policies worth 500 billion won annually, including full support for coupon costs for large promotions and scrapping fees for seller discount coupons. Support also underpinned the effort, including fostering new sellers and expanding JBP, which involves jointly establishing business plans with brand companies.

In the global reverse direct-purchase business, first-half GMV more than doubled from the second half of last year after the service began last year. About 17,000 sellers are participating, selling 30 million products to Southeast Asian markets. Gmarket plans to increase global sales further.

Gmarket plans to continue strategic investment in the second half and accelerate efforts to expand market share based on GMV. It plans to revamp its commission policy for sellers within the third quarter to reduce their burden. From next month, it will introduce a free return service for Star Delivery products for members of its 'Kkok' membership. It also plans to roll out an ultra-personalised product search and recommendation function using artificial intelligence (AI) technology in the second half.

Gmarket CEO James Jang (제임스 장) said, "The first half of this year was a period in which we led a rebound in GMV through strategic investment and confirmed the potential of our mid- to long-term growth strategy as customers, sellers and the global business grew together." He added, "We will continue to focus on what customers and sellers truly need rather than short-term results, and steadily continue investments to enhance future competitiveness."