KREAM, the resale platform well-known for its limited-edition sneakers and fashion items, has recently reported impressive growth metrics within its beauty category. During January and February 2025, transactions climbed by 66% compared to the previous year's figures. This surge reflects strategic changes by KREAM to capitalize on the burgeoning beauty market, signaling both flexibility and foresight as they expand their categories.
This substantial rise is particularly noteworthy considering the staggering increase of approximately 3630% in transaction amounts generated through fulfillment products tied to consignment sales. Analysts note this dramatic uptick can be attributed to KREAM's commitment to offering unique benefits to beauty sellers, thereby incentivizing more participation on their platform.
The beauty category has been bolstered by KREAM's low-cost commission policy—sellers are charged merely 3.5% on their sales regardless of their ranking on the platform, or, uniquely, are free from any basic commission costs. This approach fosters an environment where sellers can engage profitably without the burden of hefty fees, which is especially appealing to small business owners or individual sellers entering the cosmetic niche.
Looking back at KREAM's development, it transitioned from predominantly consumer-to-consumer (C2C) sales to embracing the business-to-consumer (B2C) model starting mid-2023, marking significant adjustments to their business strategy. KREAM's leadership, under CEO Kim Chang-wook, recognized the market's shifting dynamics and responded by encompassing business sellers to broaden their offerings and attract larger customer bases.
According to a representative from KREAM, “KREAM is providing optimized trading environments for both sellers and consumers through our beauty category expansion.” This statement underlines their dedication to enhancing the user experience on their platform for both parties involved—sellers and buyers seeking high-quality beauty products.
The growth of KREAM's beauty category doesn’t come isolated from the overall financial health of the platform. KREAM's revenue expanded remarkably from 33 billion won (approximately $27 million) at the end of 2021 to 1222 billion won (around $1.06 billion) by 2023. While this growth is impressive, it is tempered by significant operational losses: 595 billion won ($501 million) recorded for 2021, 861 billion won ($736 million) for 2022, and 408 billion won ($348 million) for 2023. Such figures indicate substantial challenges remain on the path to profitability, alongside the necessity of focusing on long-term sustainable growth alongside imminent plans for potential IPO (initial public offering).
KREAM’s corporate valuation showcases its rapid ascent; it increased from approximately 900 billion won ($760 million) in 2021 to about 9.7 trillion won ($8.25 billion) by 2023. This drastic rise highlights investor confidence as KREAM continues to adapt to consumer needs.
The drive to increase beauty sales is part of KREAM's overarching strategy to keep pace with current market trends, paralleling actions from other platforms like MUSINSA, which successively expanded their offerings by introducing beauty categories to much success. Observations reveal brands like KREAM may have recognized limitations within fashion retail and turned their attention to beauty—an area perceived to have easier inventory management and more significant profit margins.
Industry experts assert this strategic pivot will pave the way toward achieving KREAM’s IPO ambitions. A representative commented, “The beauty sector presents synergy with KREAM’s existing marketplace driven by demand from users for high-end beauty products, complementing our established sneaker and fashion categories.” This sentiment echoes across market players as they adapt their strategies to intersect with changing consumer behaviors.
Despite challenges, including growing competition and fluctuated consumer engagement post-COVID, the groundwork laid by KREAM's current business model seems increasingly likely to usher the platform toward successful public listing. The beauty category expansion is more than just revenue growth; it’s about fortifying KREAM's position as both market leader and innovator within the online resale space.
Overall, KREAM's strong performance metrics, low commission rates for the beauty sector, and commitment to innovative seller support demonstrate the company’s adaptive strategy. Moving forward, KREAM plans not just to uphold its growth momentum but also to refine its business model to remain responsive to both market trends and seller-needs as it embarks on the path to potential IPO, providing hope for both current investors and industry watchers.
