Kakao (035720.KS), which is entering the paid membership market, is joining forces with CJ Olive Young. The strategy is to quickly close the gap with front-runners NAVER (035420.KS) and Coupang (CPNG) by partnering with outside brands that have built thick layers of loyal customers.
Kakao has confirmed Olive Young as a partner for "Kakao Membership," which soft-launches on Oct. 1, and is discussing specific forms of cooperation, according to information technology industry sources on Sept. 29. The two companies will first run a joint event offering Olive Young coupons to subscribers to coincide with the membership launch. The scope of the partnership is expected to widen in stages. In streaming and food delivery, the core of subscription services, Disney+ and Coupang Eats are among the candidates being floated as partners.
Kakao Membership is expected to land somewhere between Coupang's approach of bundling its own services and NAVER's approach of broadening benefits through outside tie-ups. The model puts Kakao's own services, such as emoticons, Melon and Pay, in place as basic benefits and then adds outside brands like Olive Young to draw in members. One limitation cited, however, is that Kakao lacks the commerce base to match NAVER and Coupang, which lock in members with commerce benefits such as shopping rewards and free shipping.
A Kakao official said, "Specific details, including outside partners, will be disclosed after the service launches." (See related article on Page 2)
