Gmarket, 11st bet on their biggest annual sale as they seek a much-needed turnaround

[Financial News] Gmarket and 11st, two “first-generation e-commerce” companies, are going all out to attract customers with their biggest shopping festivals of the year. Both have been posting losses for years, drawing industry attention to whether they can lay the groundwork for a turnaround. 
According to the e-commerce industry on the 25th, Gmarket will hold Big Smile Day for 12 days, from November 2 to 13. Held twice a year, in May and November, since 2017, Big Smile Day is Gmarket’s biggest discount event of the year. The company says the November event attracts more participating sellers and offers a wider range of products than the May event.
Gmarket is making thorough preparations. This year, it will introduce for the first time a system that uses artificial intelligence (AI) to select special-deal products. The system analyzes product reviews, purchasing performance and seasonal demand to identify products that customers are likely to favor. In addition, merchandisers (MDs) will select new products and exclusive products, among others, to strengthen the competitiveness of its offerings. Gmarket has also tripled the number of special-deal products, from 1,000 to 3,000, preparing its largest selection ever.
The company has also put in place a range of measures to help sellers increase sales. It will cover the full cost of discount coupons applied to products participating in the event and expand product exposure across key shopping channels to increase sales opportunities. Big Smile Day last May drew a record high of around 31,000 sellers, while sales of participating products rose by an average of 267% compared with the two weeks before the event.
11st will also hold its biggest discount event of the year, “2026 Grand 11st Day,” from November 1 to 11. Grand 11st Day is the company’s flagship event, held annually since 2008. The two events held last November and this May drew a combined total of more than 44 million customer visits, including repeat visits. This year’s event is also set to offer a range of benefits, including special deals on popular domestic and international brands, time deals and membership-exclusive discounts.
Ahead of the main event, 11st will run a preliminary promotion from the 26th to the 31st. In particular, it plans to expand the “pre-order” event, which lets customers buy popular-brand products in advance at discounted prices, compared with last May. The company plans to offer a limited selection of special deals, particularly on digital devices and large home appliances, and support sellers in boosting sales by providing benefits such as discount coupons, advertising support and greater product exposure.
The companies’ intensive preparations ahead of their biggest discount events of the year come against a backdrop of weak performance that has persisted for years. As both have been posting losses over an extended period, they are seen as seeking to attract new customers and increase transaction volume through the events, laying the groundwork for a turnaround.
Gmarket, for example, has posted operating losses for four consecutive years, from 2022—the year after it was acquired by Shinsegae Group—through last year. Its operating loss widened to 122.4 billion won last year, from 67.4 billion won the year before. 11st has also recorded operating losses for six consecutive years, from 2020 through last year. However, its operating loss narrowed sharply to 39.6 billion won last year, from 75.4 billion won the year before. Industry observers see this year’s events as an important opportunity for both companies to attract customers and recover sales.
An industry source said, “Gmarket and 11st’s discount events have been running for a long time, and the events themselves have become brands. Many consumers also wait for them to make their purchases. Because the companies are concentrating substantial marketing budgets and product-planning capabilities on these events, they can have a significant impact on performance by drawing customers and boosting sales.” 
[email protected] Jang Yu-ha Reporter