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While the e-commerce industry in South Korea flourished in 2020 because of the COVID-19 pandemic restrictions, another market trade platform also got a strong boost – the second-hand goods transaction market. The most popular second hand goods online market space – Karrot developed by Korean startup Danggeun Market Inc. saw an overwhelming increased in demand and high transactions in 2020.
A new consumption culture with people considering ‘spending wisely’ meant more consumers looking for second-hand goods. With more ‘staying home’ time due to the coronavirus outbreak in 2020, a need to de-clutter arose as people sold unwanted items. These changes propelled the increase in transactions for Karrot, which is now South Korea’s largest second hand marketplace and second biggest e-commerce company after Coupang.
Like a neighbourhood Flea Market
Danggeum Market Inc. launched Karrot in 2015 as a second hand transactions platform exclusively for IT workers in Pangyo Tech Valley. But soon its services were expanded and by January 2018 it had become more of a community-based transaction platform encouraging neighbourhood sales.
Danggeun Market has undergone explosive growth since its launch, and Karrot has become the most downloaded app in South Korea by the second half of 2020. The average number of monthly users are over 8 million and had topped to 10 million users in September 2020, closing it fast to the number one e-commerce app ‘Coupang’, which has 13 million users. More than 300,000 items are newly registered daily on Danggeun Market’s Karrot app. You can find things from microwaves, furniture, electronics, games, and even food items for sale on Karrot.
It is quite easy and convenient to trade using the Karrot app, which is available for both iPhone and Android users. The main feature of Karrot market that sets it apart from other apps, is that only users 6 km (3.7 miles) of each other can participate in trades. This 6-km rule makes it easy to spot listing of goods and also encourages neighbourhood interactions.
“With other secondhand market platforms, you trade with a person who you will never see again. But with Danggeun Market, you can trade various items with your neighbours, and its users carry out a deal with good manners,” Kim Jae-Hyun, co-head of Danggeun Market, had said in an interview with Yonhap News Agency in July.
Easy to use for buyers & sellers
Like any other app, Karrot App can be downloaded from Play Store or App Store. The buyer can register login and start browsing through various items on sale in their neighbourhood. The default language for app is Korean, but user can change it to English. If you like to buy a particular good, you can connect with the seller by messaging them on the app or simply saving the item to ‘favourite’ list and checking again with more options or less price. For buying from the seller, you can connect directly and decide on payment as per preference. Financial transactions don’t take place on Karrot App. For sellers, Karrot app is easy to use as you simply upload pictures of the item you are selling and quote the price you want to sell it for.
The Karrot App is available for now In South Korea and the UK, but the Dangeum Market Inc. wants to expand to other countries as well.Investors in the company include : Kakao Ventures ; SoftBank Ventures ; Burlingame, California’s Goodwater Capital and Menlo Park, California’s Altos Ventures.
Read more about E-commerce in Korea on Koreatechdesk.com,
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- Top 3 economic changes that happened in South Korea during the Coronavirus wave
- Korean startup Zigbang’s app: One-stop-shop for all rental properties in Korea
- Korean startup DamoGO’s app helps reduce food waste by selling ‘unsold’ food from restaurants, stores & farms
