CJ ONSTYLE sustained its revenue growth in the first quarter, driven by a content- and fandom-based mobile commerce strategy. However, margins narrowed due to expanded investment in artificial intelligence (AI).
CJ ENM disclosed on Wednesday that first-quarter revenue from its commerce division (CJ ONSTYLE) rose 4.5% year-on-year to 378.5 billion won ($275 million). Operating profit fell 7.6% to 23.9 billion won ($17 million). The company said that increased investment in content production and AI enhancement to strengthen its mobile competitiveness weighed on operating profit.
Growth in mobile live commerce was particularly pronounced. First-quarter mobile live commerce gross merchandise value surged 137% year-on-year. The expansion of short-form content and influencer-driven traffic led the earnings growth, while the company's fandom intellectual property (IP) strategy also contributed to a broader influx of new customers, according to the analysis.
The effect of expanded mobile investment also translated into improved customer metrics. New app installations and monthly active users (MAU) each rose 11.8% from a year earlier. The company said the mobile-centered growth structure is strengthening as new customer inflow and user activity improve simultaneously.
CJ ONSTYLE plans to continue its growth momentum in the second quarter, led by fandom IP and premium product competitiveness.
"Our strategy is to broaden our fandom customer base by expanding collaborations with major external IPs such as the Korea Baseball Organization (KBO), the film 'The Devil Wears Prada 2,' and mega-influencers," a company official said. "Through large-scale campaigns and enhanced premium product sourcing, we aim to simultaneously boost customer inflow and lock-in effects."
The company will also continue to expand AI-based content investment. It plans to strengthen its short-form commerce competitiveness and expand data-driven influencer commerce to further accelerate mobile live commerce growth.
