Karrot Dangeun

Karrot
DangGun is a Korean secondhand marketplace app.
Prepare your report to explore and tell us what DangGun Market is,
and how it works. And then provide information on the following
discussion questions.
1. Are there any advantages and disadvantages of selling and

buying via DangGun App?
2. What is DangGun Beggar? What are the categories "Beggars"?
3. The JungGoNara(Used World) is a big rival for DangGun Market in

Korea, whose market sized is about the same as DangGun.
However, the corporate value for DangGun is 30 times greater than
JungGoNara. What do you think makes the difference?
How it works
is a peer-to-peer marketplace that only shows the listings of people that live near your area. Users will
only see listings within a six-kilometer radius (will be extended for rural areas). Once downloading
the app, users can look at all the second-hand goods uploaded by people living near them. Users can
directly communicate with the sellers. Most transactions are done in cash but can also be done via
mobile payment. In fact, the final price is negotiated by the seller and the buyer only. It is not
uncommon for prices to be discounted in person.
ll the user’s identities need to be verified through their mobile number and location for safety reasons.
It is up to the buyer to arrange for the transportation of the item. It also has a review system that
allows users to rate both sellers and buyers.
USERS DEMOGRAPHIC
They have over 18 million monthly active users with users in the prime online shopping demographic
of 25-50-year-olds
ABOUT DANGEUN
Danggeun Market was founded in 2015 by Gary Kim and Paul Kim who both worked at
KakaoTalk. While there were online flea market websites in Korea there were no apps. Danggeun
Market was explicitly designed as a mobile app where people in Korea can quickly take a picture of
their second-hand goods and uploaded it to the app to sell. Very fast, very easy. The addition of the
number of listings shown to be within 6 kilometers does not clutter up the number of listings.
The app does not charge listing fees and is free to use. In addition, it does not take any percentage of
the sale of the items. Instead, Danggeun Market makes money through hyperlocalized advertising.
This is what attracts so many users to the app. Since 2015, the app has seen its monthly active users
double year after year. It is now the second-largest shopping app in South Korea behind Coupang. It is
estimated that the average Karrot user spends about 20-30 minutes on the app.
HOW IS DANGGEUN DIFFERENT

However, what Gary and Paul feel differentiates Dannggeun Market from other online markets is the
interaction among your fellow neighbors. They feel that the app will play a major role in
neighborhood networking and community building.
1. User Growth and Engagement

Danggeun Market has seen rapid user growth, reaching 7 million monthly
active users as of April 2020, making it the second-largest shopping app in
South Korea after Coupang.4 Users spend an average of 20 minutes per day
on the app.4 This high level of user engagement and stickiness is attractive for
investors.
2. Mobile-First and User Experience
Danggeun Market's Karrot app was designed from the ground up for mobile,
with features like location-based listings within a 6km radius and identity
verification.4 This provides a better user experience compared to
Joonggonara, which originated as a website before transitioning to mobile.2
3. Focus on Local Communities
Karrot's hyper-local model of facilitating transactions between neighbors
within a small radius has helped foster a sense of community.4 This
community aspect provides opportunities for deeper engagement and
monetization beyond just transactions.
4. Monetization Potential
While both platforms are largely free for users, Danggeun Market's focus on
local advertising and community features offers more monetization avenues
compared to Joonggonara's traditional classifieds model.4
5. Investor Confidence and Funding
Danggeun Market has raised over $40 million from reputable investors like
Goodwater Capital, Altos Ventures, and Softbank Ventures.4 This funding and
investor backing likely contribute to a higher valuation.
6. Growth and Expansion Plans
Danggeun Market has plans to expand Karrot internationally to other densely
populated areas, while Joonggonara seems more focused on the domestic
Korean market based on the information provided.24
So in summary, Danggeun Market's mobile-centric design, community focus, user
growth trajectory, monetization potential, investor support, and expansion plans
likely position it as a more attractive investment opportunity compared to the older
Joonggonara platform, resulting in a significantly higher corporate valuation despite
similar market sizes.
Advantages:
1. Hyper-local focus: Danggeun Market facilitates transactions within a 6km
radius, making it convenient for local buyers and sellers to meet in
person.1 This reduces the risk of scams and shipping costs.
2. User verification: All user identities are verified through mobile numbers and
location, adding a layer of trust and safety to transactions.1
3. High user engagement: With 7 million monthly active users spending an
average of 20 minutes per day on the app, there is a large potential customer
base.1
4. Community-driven: The neighborhood-centric model fosters a sense of
community among users, encouraging more engagement and transactions.13
5. Free to list: Unlike some other platforms, Danggeun Market does not charge
listing fees, making it cost-effective for sellers.1
6. Monetization through ads: The app generates revenue through hyper-
localized advertising, eliminating the need for seller fees.1
Disadvantages:
1. Limited geographic reach: Sellers can only list items within their local 6km
radius, restricting their potential customer base compared to nationwide
platforms like Bunjang.1
2. Restrictions on professional sellers: Danggeun Market limits the presence of
professional sellers and shop owners to maintain a peer-to-peer environment,
which may not suit some sellers.3
3. In-person transactions: While reducing the risk of scams, the need for in-
person meetups can be inconvenient for some buyers and sellers.1
4. Competition in local markets: With the app's popularity, there may be
significant competition among sellers in densely populated areas.3
5. Limited product categories: Compared to Bunjang, Danggeun Market may
have fewer options for certain product categories like electronics or luxury
items.3
Overall, Danggeun Market's hyper-local model, user verification, and community
focus are advantages for sellers looking for a trusted, neighborhood-based platform.
However, the geographic limitations, restrictions on professional sellers, and
potential local competition could be disadvantages for some sellers seeking a wider
customer base or selling specific product types.
https://www.daangn.com/story_articles/381660407
https://blog.naver.com/PostList.naver?blogId=skyyoojh
https://www.chosun.com/english/2023/08/30/MGKMYGXBQFAWTE7HR4WA24OGDA/
https://blog.naver.com/PostView.nhn?blogId=skyyoojh&logNo=222322250927
https://www.seoul
z.com/largest-online-flea-market-in-korea-danggeun-market-karrot/

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Karrot

DangGun is a Korean secondhand marketplace app.

1. Are there any advantages and disadvantages of selling and

2. What is DangGun Beggar? What are the categories "Beggars"?

3. The JungGoNara(Used World) is a big rival for DangGun Market in

HOW IS DANGGEUN DIFFERENT

1. User Growth and Engagement

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