Can TMON become new powerhouse in online retailing?

Ticket Monster CEO Lee Jin-won poses in this 2019 file photo. / Courtesy of Ticket Monster

By Kim Jae-heun

The country's first social commerce operator Ticket Monster (TMON) recently stated its objectives of achieving a surplus this year and going public next year. If it fulfills its goals, it will be the first player in the sector to do so.

TMON showed a gain for the first time in March since its establishment in 2010. It is uncertain whether the company will remain in the black for a second straight month, because it paid bonuses to employees in April. But it does not appear too difficult for the firm to finish the year in profit.

The COVID-19 pandemic is helping TMON's finances.

It has focused on a lucrative strategy of offering time-limited discounts for different items every hour. This has attracted consumers and sellers alike. In particular, vendors who wish to sell a large quantity of products quickly have been offering special prizes for their items on TMON. This guaranteed the best price for consumers and sales for vendors.

The number of vendors by the end of last year soared 42.4 percent compared to the first quarter of 2019, and those who made over 100 million won increased by 16 percent.

The company's business restructuring also played a part in improving returns. TMON ended its supermarket and logistics businesses and strengthened competitiveness in its main business, e-commerce.

If TMON's initial public offering (IPO) next year is successful, it could change online retailing, and challenge the present powerhouse Coupang.

It recently signed a contract with Mirae Asset Daewoo for the local brokerage to be the lead underwriter of the planned IPO. TMON is aiming for a special listing, which is a system to help firms with potential go public despite their unfavorable financial status.

“We will achieve an annual surplus this year and show that our management is stable to prepare for the IPO,” a TMON official said. “All the company's financial details will be revealed with transparency.”

Among local online e-commerce operators, only eBay Korea is posting stable gains in revenue. It operates G-Market, Auction and G9 here. Eleven Street had an operating surplus for the first time last year but it has to prove its consistency for at least another year.