SEOUL – 11Street, a South Korean e-commerce platform, has announced its ambitious goal to achieve earnings before interest, taxes, depreciation, and amortization (EBITDA) profitability in 2025. This announcement comes after years of operating losses, making it a significant turning point for the company.
Key Points:
EBITDA Profitability Target: 11Street aims to achieve EBITDA profitability in 2025, following a successful turnaround in its open market business in 2024.
Open Market Success: The company's open market business has shown strong performance, with monthly operating income turning positive in March 2024 and maintaining a surplus for 11 consecutive months.
Retail Business Improvement: The retail business has also shown signs of improvement, with operating losses reduced by more than ₩50 billion in 2024.
Growth Flywheel Strategy: 11Street plans to achieve its goal through a "growth flywheel" strategy, focusing on key elements such as products, pricing, traffic, and delivery to create a virtuous cycle of growth.
Focus on Mart and Fashion: The company will concentrate on the mart and fashion categories to build a loyal customer base.
Enhanced User Experience: 11Street plans to expand its ultra-low-price product lineup and improve search convenience to attract more customers.
Challenges and Opportunities:
11Street faces challenges in the competitive e-commerce market, but its recent performance and strategic initiatives suggest a positive outlook for the company's future. The company's focus on profitability and customer satisfaction could help it gain a stronger foothold in the market.
Overall, 11Street's goal to achieve EBITDA profitability in 2025 marks a significant milestone in its journey. The company's recent successes and strategic initiatives provide a solid foundation for its future growth and profitability.
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