November 27, 2024

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STX's headquarters in Jung-gu, Seoul. (STX)

Although various business models such as the business-to-consumer, or B2C, model have consistently trended in South Korea, they are not always an attractive choice for foreign investors for several reasons, such as the limited size of the domestic market, competition in logistics management and decreased profitability.

As these issues are becoming widely recognized, there have been efforts from companies to revamp existing B2C platforms into global B2B, or business-to-business, platforms. As the B2B trading sector subsequently undergoes a shift to digital platforms, general trading company STX's “Trollygo” is poised to make a significant impact with its launch in the third quarter of this year.

"We will spearhead a new model within the market, changing the paradigm of the trading industry," STX said.

Trollygo will be the industry's first B2B platform that enables online trading of raw materials and industrial goods such as metals, steel, energy, eco-friendly materials and defense-related products.

The digitalization of the transaction of such products has largely been hindered due to longstanding traditional offline transactions. However, STX seeks to break that barrier by leveraging its knowledge and experience to develop tools for managing large quantities of information and innovating internal processes.

With its data-centric management approach and the support of a robust global network, Trollygo aims to revolutionize supply chain management and provide a customer-engaging mega-platform.

STX plans to invite verified vendors by reviewing their track records, revenue scales and production capacities. It will also manage the risks associated with offline transactions by facilitating the accurate and specific exchange of information between key stakeholders.

In particular, it is expected to aid small to medium domestic companies that face challenges in domestic and international sales by supporting independent trade transactions, STX said.

The company has also already secured a competitive edge in operating B2B platforms by operating subsidiaries and branches across the world while yielding a completely dollar-based revenue.

Accordingly, investors both domestically and internationally are eyeing the platform's potential for scalability and reduced logistics costs.

By Yu Ji-soo (jisooyu123@heraldcorp.com)