Get two people and get a discount – Talk Deal

Last month, we learned about KakaoTalk channel’s various chat functions: Chatbot, Live Chat, and AlimTalk. Optimizing these chat functions is necessary for brands since KakaoTalk carries a very wide variety of benefits both for brands and users. Once a brand launches its KakaoTalk channel, it can explore much more services within Kakao, such as ‘Kakao Shopping’. Kakao Shopping is an integrated shopping platform within Kakao that supports commerce activities and provides solutions optimized for mobile shopping experiences through Kakao. Kakao Shopping is within the commerce service such as KakaoTalk Gift and KakaoTalk Store.

On Kakao Shopping, there are various features that brands can make use of. One of them is  ‘Talk Deal’, a group purchase service. A live commerce service called Kakao Shopping Live is also provided, but let’s talk about this more later on. This Talk Deal service has achieved a 125% increase in the cumulative number of participants in just 2 years since its launch. And the number of Kakao Shopping’s KakaoTalk channel followers also recorded 4.2 million as of June 2021.

Talk Deal is a service that officially opened in June 2019, and features discounts under the condition that at least two people gather to purchase the goods. The advantage is that users can purchase products at a discount, and manufacturers and sellers can promote sales and exhaust inventory in a short period of time. In fact, the number of products accumulated through Talk Deal has surpassed 380,000 as of June this year. In particular, the repurchase rate of TalkDeal is currently 86%, and four out of five Talk Deal buyers were identified as “re-purchasers” who once again purchased products through Talk Deal. Among the talk deals, the most popular category was “processed food”. Due to the popularity of Kakao Shopping, even department stores are holding events using Talk Deal. Since 2019, a total of 61 department stores have participated in the Talk Deal event. In addition, the cumulative number of popular brands that participated in Talk Deal has increased by about 620 since 2019 as Talk Deal’s growth has increased.

From the seller’s point of view, Talk Deal can reduce concerns about its own marketing methods because it offers discount functions and various exposure channels as packages. In addition, users have the advantage of purchasing products at a discount and even accumulating Kakao points if only two people gather. In order to enter Talk Deal, the brand needs to prepare entry documents, create a Kakao account, register a Biz account, and sign up for Talk Store.

However, an always-on option is difficult as the group buying-selling method is not sustainable. Furthermore, when the Talk Deal discount begins, it is not possible to stop and delete sales and modify discount information, so it’s important to consider it carefully before selling. Initiating activities on Talk Deal can be definitely beneficial for not only FMCG brands but also beauty or fashion brands. But the brand will have to understand which areas of Kakao the Talk Deal service is exposed to and what sales management process the Talk Deal goes through first.  Let’s find out in the next episode.

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