CJ NowCJ O Shopping’s media commerce subsidiary DADA M&C attracts an investment of 21 billion KRW from Mirae Asset Global Investments
Media commerce subsidiary DADA M&C (Marketing & Commerce), founded by CJ O Shopping, successfully attracted an investment from Mirae Asset Global Investments. Based on the external investments, the company plans to increase its gross merchandise volume by up to more than 100 billion KRW by 2023 and even go public.
The gross merchandise volume increased by 2.2 times the amount last year based on differentiated content production competencies and product quality
▶ Media commerce subsidiary DADA M&C founded by CJ O Shopping attracted an investment of 21 billion KRW by signing a subscription agreement for new stocks with Mirae Asset Global Investments. From the left: Mirae Asset Global Investments PEF1 President Ahn Sung-woo, CJ ENM Commerce Division CEO Heo Min Ho, and DADA M&C CEO Seo Seungwon
CJ ENM Commerce Division CEO Heo Min Ho running CJ O Shopping, DADA M&C CEO Seo Seungwon, and Mirae Asset Global Investments PEF1 President Ahn Sung-woo signed a subscription agreement for new stocks of DADA M&C at 3 p.m. on the 9th at the Four Seasons Hotel Seoul in Gwanghwamun. 910 thousand new stocks issued by DADA M&C have been acquired by the private equity fund (PEF) for management participation to be managed by Mirae Asset Global Investments with an investment worth 21 billion KRW. CJ ENM Commerce Division will be the largest shareholder with management rights, and the private equity fund will become the second-largest shareholder by acquiring the new stocks.
DADA M&C is a company specialized in media commerce and was begun in 2017 by CJ O Shopping’s New Business Development Team. CJ is the first major retailer in Korea to have a separate media commerce business in the form of a corporation. Media commerce is a type of online commerce that induces purchasing by creating video content for product marketing and posting it on various platforms, such as Instagram and YouTube. This maximizes the marketing effect by drawing interest from the MZ generation with a high level of mobile content consumption based on trendy product sourcing and content marketing competencies. DADA M&C has secured multiple channels of its own in both Korea and overseas based on its digital content production competencies and has run its digital advertising business accordingly. Last year, its gross merchandise volume increased by 2.2 times year on year with the rapid progress in product sales. The digital-based direct-to-consumer (D2C) model is also expanding its base, showing high growth potential.
With a focus on a new growth model by attracting external investments, the company will increase the gross merchandise volume up to more than 100 billion KRW by 2023 with differentiated content and new brands
▶ Media commerce subsidiary DADA M&C founded by CJ O Shopping attracted an investment of 21 billion KRW by signing a subscription agreement for new stocks with Mirae Asset Global Investments. From the left: Mirae Asset Global Investments Managing Director Ahn Seong-Ho, Managing Director Bae Joong-gyu, PEF1 President Ahn Sung-woo, CJ ENM Commerce Division CEO Heo Min Ho, DADA M&C CEO Seo Seungwon, and CJ Group Vice President Lee Seung-Hwa
DADA M&C was founded as a separate corporation for media commerce in December 2020. This was done to increase management efficiency in line with the changing trends by adopting a startup-style management approach that enables quick decision making. DADA M&C is currently operating its own channels across various social media platforms, while also running the product selling platform ‘DADA Pick’, scalp care device brand website ‘Fillizer’, and small appliances PB sales website ‘Triple Black’.
This investment may be a new opportunity for the company to acquire the innovative investment tips of Mirae Asset Financial Group in addition to securing funds. This growth model, which is attracting investments by founding an independent corporation for promising businesses, is being actively adopted worldwide. DADA M&C’s goal is to even go public by increasing its enterprise value through Mirae Asset Financial Group’s portfolios, human networks, and know-how in value creation. The fund secured through the investment will be used to make IT investments to increase the competitiveness of its commerce platform ‘DADA Pick’ and create contents, as well as to accelerate growth by discovering new promising brands.
DADA M&C intends to become a company that discovers and distributes promising brands for Generation MZ based on its understanding of digital content and data as well as video content production competencies. “The growth potential of media commerce business will increase even more 3-4 years from now when Generation Z becomes the largest consumers,” said DADA M&C CEO Seo Seungwon. “We will strive to have our company grow into a ‘digital brand accelerator’ that improves the brand image and promotes product sales on mobile channels.”