Disclaimer – The original article from Hot Global Trends for Korea 2019 was translated from Korean to English.
Korea Trade-Investment Promotion Agency (KOTRA) has recently featured Kaodim in their book “Hot Global Trends for Korea 2019” which introduces innovative and popular business ideas from all over the world that could be successful in the Korean market.
KOTRA is a state-funded trade and investment promotion organization operated by the Government of South Korea. KOTRA facilitates Korea’s rapid export-led economic development through various trade promotion activities such as overseas market surveys, SME export promotion, trade info services, government to government export, foreign investment in Korea promotion and business matchmaking.
If you are interested to find out more about what was written, have a read of the English translation below.
All services in one hand
“My domestic helper has left. Can you introduce me to a more dependable one?”
“I am planning to relocate next month. Do you know any cheap and reliable relocation vendors?” As there are so many options available on the Internet, making your choice can sometimes be tough.”
With the increase in options when it comes to service providers, completing the mundane everyday chores become more convenient. Having said that, getting information about these service providers and evaluating their reliability is not an easy task
Not only is there limited information available on the Internet about these vendors, but the reliability of the given information cannot always be guaranteed as it is an advertisement after all. Kaodim Malaysia provides a solution to resolve these issue through their platform which aims to connect service providers and consumers.
The idea which started Kaodim was sparked when its founders Jeffri Cheong and Choong Fui – Yu realized that people often struggled to look for service providers as they had to rely on their friends’ recommendations. As a result, they envisioned for services to eventually be as easy and convenient as booking a taxi on “Grab”. Behind Kaodim’s vision stand two young Chinese Malaysian Lawyers who executed the innovative idea. Prior to the birth of Kaodim, the two lawyers were acquainted with many Malaysian CEOs of various start-up companies and provided legal advice for the establishment and operations of these start-ups. Amid their interactions with these start-ups, they were inspired by the idea of having a platform for services in Malaysia, and so they started Kaodim.
Can we get services conveniently through an application?
Kaodim is a platform which matches consumers with all types of service providers. These services range from household services such as home cleaning services, and home appliance repairs; to other types of services such as photography services or home-tuitions. Consumers can obtain various services through the homepage or directly from the application. The service providers will then respond directly to the customer with customized quotations and relevant information. Moreover, registered users will have tailored selections of vendors based on their previous experience with Kaodim.
- Malaysia service platform ‘ Kaodim’ homepage
Win-Win for both, Consumers and Service Providers
Kaodim saves consumers a lot of time and effort in finding the appropriate service provider as well as reduces the time and marketing expenses required by service providers to get consumers. Thus, it gathers consumers and services on one platform.
Consumers can also compare services and quotations of several service providers on one platform and have the flexibility of choosing their desired time and location. It’s like having a “Butler of my hand” through which various services can be obtained conveniently on one mobile application.
Not only do customers benefit from this platform, but service providers benefit as well. Up until now, service providers often had no assurance that the consumer who received their quotation will choose to use their service, resulting in fruitless efforts.
- Operating Method of Kaodim
However, now they can understand their customer’s requirement through the mobile application and can provide quotations online very easily.
Besides this, Kaodim also takes the time to educate their service providers about various marketing strategies such as effective methods of quotation preparation, submitting quotations based on the requirement of the customers, etc. The communication skills and quality of the service provider’s quotations and have improved noticeably while using Kaodim, and this has led to a natural increase in sales. Some service providers are even paying a portion of their profits to Kaodim as a token of appreciation.
Within a month of launching the service in 2014, 500 service providers registered on Kaodim and attracted 2 million Ringgit (approx. 550,000 dollars, approx. 600 million Won) immediately after the establishment. In a short period of only three months, it received 1,300 quotations. In addition, this number of requests is increasing rapidly at a rate of approximately 45% each week. and achieved a total transaction amount of 10 million dollars (approximately 11.2 billion Won).
And as of July 2018, Kaodim has expanded to Singapore, Indonesia, and the Philippines, becoming the No. 1 service platform in Asia. Kaodim provides free service to the consumers but it charges 3 Ringgit to 20 Ringgit (approximately 800 Won to 6,000 Won) to service providers when they register quotations to the platform or responds to the request of the consumer.
The Emergence of an Extraordinary Matchmaking Service: Does it drive advertising?
In addition to Kaodim, a variety of matchmaking services are constantly emerging in Malaysia. Among them, a service called ‘mybump’ attracts attention.
As a platform to connect individual driver and advertisers, mybump is a system which pays an advertising fee to users depending on the distance travelled if they have an advertisement affixed on their personal vehicle. A driver can earn up to 887 Ringgit (approx. 240,000 Won) per month if they affix a company’s advertising on their vehicle and drive around. It can be said to be an appropriate business model for Malaysia, where transportation services using personal vehicles such as Uber or Grab are active.
Korea: the kingdom of delivery, Why not ‘Kaodim’?
Korea’s delivery system can be said to be the best in the whole world.
- Main Services of Kaodim
What could be the reason behind the development of Korea’s delivery service? It can be said to be the nature of Korean people who pursue easy and fast things at all walks of life.
Seeing how Kaodim has become the No.1 service platform in Asia, it is questionable why such a platform has not yet come up in Korea. The emergence of service platforms like Kaodim is good news in today’s context where one-person media is becoming more active than ever before, and there is a diverse range of hobbies and lifestyles irrespective of gender and age.
The repairing of PCs, handphones and home appliances to cleaning services has become a trend in Korea. As such, a crucial question to ask is who will begin a similar service platform in Korea.
Various services such as customized flower delivery, lunch delivery, and delivery of cooking materials for single-person households, etc are emerging in Korea, and it is expected that the demand and profit will be much higher than Malaysia if a platform that gathers services on one platform is available in Korea. For the success of a service platform in Korea, more thinking will be required to answer questions such as how to ‘persuade different service providers’, ‘how to improve quality of service providers which are large in numbers’ ‘what measures to take if the consumer is unsatisfied with the quality of service’, etc.
Written by Yoo-Jin Oh (KOTRA Kuala Lumpur)
Kaodim’s excerpt in Hot Global Trends for Korea 2019 can be found below in PDF:
A copy of the book can be bought at here